Last updated: 22 October 2026
Fill this online (free): create your purchase order online, then print or save PDF. Blank Word/Excel downloads stay below.
Short answer: a purchase order (PO) is the document a buyer sends to a supplier to confirm what it wants to buy, at what price, and when. It is not a GST document; your input tax credit depends on the supplier’s tax invoice, not on the PO. Download our free PO format below; it has GST columns that calculate CGST, SGST or IGST for you.
Awarding defined work (services, repairs, installation, site labour) rather than buying goods? Use a free work order format (Excel, Word and PDF) — keep this purchase-order page for goods buying.
Download the purchase order format
- Purchase order format in Word (.docx)
- Purchase order format in Excel (.xlsx): type the quantity, rate and GST %, and set the tax type to CGST-SGST or IGST; the totals fill in.
- Purchase order format in PDF
All three are blank: add your own business name, address and GSTIN.
What is a purchase order and when should you issue one?
The buyer issues the PO, usually after accepting the supplier’s quotation or proforma invoice. It gives both sides one agreed record of item, quantity, price and delivery terms.
Issue a PO when:
- the order is large, or will be delivered in parts;
- more than one person in your business approves purchases;
- you want to check the supplier’s bill against what you ordered.
Purchase order format: fields to include
| Field | Tip |
|---|---|
| Buyer name, billing address, state, GSTIN | The supplier must print your GSTIN on its tax invoice for you to get ITC |
| Supplier name, address, state, GSTIN | Check the GSTIN before ordering |
| PO number and date | Use your own series, e.g. PO/2026-27/001 |
| Supplier quotation number and date | Links the PO to the agreed price |
| Delivery address and date | Can differ from billing address |
| Place of supply | Decides CGST + SGST or IGST |
| Item description, HSN/SAC, quantity, unit, rate | Match the supplier’s catalogue |
| Taxable value, GST rate, tax amounts, total | So the invoice can be checked line by line |
| Payment terms, freight, inspection | Commercial terms |
| Prepared by / approved by signature | Your internal control |
Filled example with ₹ figures
A Delhi trader orders from a supplier in Haryana. The states differ, so IGST applies. We use 18% for illustration; use the rate for your HSN code.
| Item | Qty | Rate | Taxable value | IGST 18% | Total |
|---|---|---|---|---|---|
| Steel shelf | 200 | ₹350 | ₹70,000 | ₹12,600 | ₹82,600 |
| Storage cabinet | 50 | ₹1,200 | ₹60,000 | ₹10,800 | ₹70,800 |
| Total | ₹1,30,000 | ₹23,400 | ₹1,53,400 |
If both were in Delhi, the same ₹23,400 would show as CGST ₹11,700 + SGST ₹11,700. Our GST invoice format explains the split.
Is a purchase order a GST document?
No. Section 16(2) of the CGST Act allows input tax credit only when you hold a tax invoice or debit note from the supplier. A PO is not on that list. For ITC you also need:
- the supplier to report the invoice in its GSTR-1, so it reaches you (section 16(2)(aa));
- the credit not to be restricted in your GSTR-2B (section 16(2)(ba));
- to pay the supplier within 180 days of the invoice date. If you don’t, you must pay back an amount equal to the ITC with interest; you can take it again once you pay.
Example: the ₹1,53,400 invoice above is dated 1 Nov 2026. If it is still unpaid 180 days later, the ₹23,400 ITC must be paid back with interest until you pay the supplier.
PO → delivery challan or GRN → invoice: the 3-way match
Goods arrive with a delivery challan
Some goods move on a delivery challan instead of an invoice, for example for job work (Rule 55). Ask suppliers to quote your PO number on it.
Goods receipt note (GRN)
When goods arrive, your store writes a GRN: what came in, how many, and in what condition. It is an internal record.
Match the supplier’s GST invoice before payment
Check three documents line by line: PO (what you ordered), GRN (what arrived) and tax invoice (what you are billed). Then check that the invoice has the Rule 46 details: supplier GSTIN, invoice number and date, your details, HSN/SAC, value, rate and tax, and place of supply.
| Check | PO | GRN | Invoice |
|---|---|---|---|
| Quantity | 200 | 196 received | 200 billed → ask for a credit note for 4 |
| Rate | ₹350 | — | ₹350 ✔ |
Numbering, approvals and amendments
- Number POs in one series per financial year.
- If the price or quantity changes, issue a revised PO (e.g. PO/2026-27/001-R1) rather than editing the old one.
- If an order is cancelled, mark the PO “Cancelled” and tell the supplier in writing.
PO vs quotation vs proforma vs invoice
| Document | Who issues | Purpose |
|---|---|---|
| Quotation | Supplier | Offer a price |
| Proforma invoice | Supplier | Ask for approval or advance |
| Purchase order | Buyer | Confirm the order |
| Tax invoice | Supplier | Bill the supply; basis for ITC |
When a template is enough, and when software helps
Choose the Excel template if you raise fewer than a few POs a week. Choose billing or inventory software if you match many POs with stock and invoices; see our GST billing software guide and billing software for retail shops. Record payments in your cash book.
Checklist and common mistakes
- Supplier GSTIN checked before the PO goes out.
- PO number quoted on the challan and invoice.
- No payment before the 3-way match.
- Payment within 180 days of invoice to keep ITC.
- Don’t treat the PO as proof for ITC.
FAQs
Who issues a purchase order, buyer or seller?
The buyer.
Does a PO need the supplier’s GSTIN?
The law does not prescribe PO contents, but including it helps you match the tax invoice later.
Can I claim ITC on a purchase order?
No. You need the supplier’s tax invoice (section 16(2)).
How do I number purchase orders?
Use one series per financial year, for example PO/2026-27/001, and never reuse a number.
Sources and further reading
- CGST Act section 16 (CBIC).
- CGST Rules 46 and 55 (CBIC tax information portal).
- Checked 22 Oct 2026.