Free Purchase Order Generator
Create a purchase order online: the vendor, what you're buying, prices and GST, the delivery date and the payment terms. No sign-up needed to start.
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What is a purchase order?
A purchase order (PO) is a buyer's written order to a vendor: what to supply, how much, at what price, where and by when. You send it; the vendor delivers, then invoices you quoting your PO number.
It puts the deal on paper before anything ships. Once the vendor accepts it, both sides work from the same terms, and when the invoice arrives you can check it line by line against the PO and what was delivered.
A PO isn't a GST document. It isn't reported in GST returns and gives no input tax credit; that comes from the vendor's tax invoice. Showing GST on the PO still helps, because it tells both sides what the invoice should come to.
Buying from a micro or small enterprise registered under the MSMED Act (Udyam)? Section 15 of that Act says the payment period you agree can't be more than 45 days from the day you accept the goods or services.
Purchase order format: what it should include
No law prescribes a PO format, and GST doesn't treat it as a tax document. A clear PO carries these details, so the vendor can deliver and invoice without back-and-forth:
- A PO number and date, which the vendor quotes on their invoice so you can match the two.
- Your business name, billing address and GSTIN. The vendor's invoice must show your GSTIN for you to claim input tax credit.
- The vendor's name, address and GSTIN.
- A delivery address, if the goods go somewhere other than your billing address.
- Each item with a description, HSN/SAC code, quantity, unit and the agreed rate.
- The GST rate and amount, and the order total.
- The expected delivery date.
- Payment terms, such as advance, against delivery, or 30 days from delivery.
- Delivery terms, and the vendor's quotation reference if the order follows one.
- The signature of someone authorised to place the order.
Source: Good practice, not a legal requirement: GST law has no PO format. The vendor's tax invoice must meet Rule 46 of the CGST Rules, 2017; the 45-day limit is in Section 15 of the MSMED Act, 2006.
How to create a purchase order with this generator
Add your business and the vendor
Type your business name, address and GSTIN, then the vendor's. The two GSTINs set the tax: CGST + SGST from a vendor in your state, IGST from one in another state, and no GST from a vendor who isn't registered.
Say where and when
Add a Deliver To address if the goods go to a site or godown, the expected delivery date, and the vendor's quotation reference if they quoted.
List what you're ordering
Enter each item with its HSN/SAC code, quantity, unit, agreed rate and GST rate. If the vendor gives a discount, add it on that item's line.
Check the totals
The editor works out the GST, the order total, an optional round off and the amount in words.
Set the terms
Pick or type the payment terms, for example '30 days from delivery', add delivery terms and notes, and choose the Modern, Classic or Minimal template and a colour.
Download and send it
Press Download and sign up free for the PDF. With your account, you can see which orders are still open and which deliveries are late.
Purchase order vs invoice
A PO and an invoice are two ends of the same deal, written by opposite sides.
| Purchase order | Invoice | |
|---|---|---|
| Who issues it | Purchase order: The buyer. | Invoice: The seller. |
| When | Purchase order: Before the goods or services are supplied. | Invoice: At or after supply: for goods, by the time they're sent out; for services, within 30 days. |
| What it does | Purchase order: Orders goods or services on stated terms. | Invoice: Bills for what was supplied and asks for payment. |
| Under GST | Purchase order: Not a tax document. | Invoice: A tax invoice under Section 31 and Rule 46, if the seller is registered. |
| Input tax credit | Purchase order: None. | Invoice: The registered buyer claims it from the invoice. |
| GST returns | Purchase order: Not reported. | Invoice: Reported by the seller in GSTR-1. |
| Numbering | Purchase order: The buyer's own PO series. | Invoice: The seller's own invoice series, quoting the PO number. |
Frequently asked questions
Purchase order kya hota hai?
Purchase order (PO) buyer ka vendor ko likhit order hai: kya chahiye, kitna, kis rate par aur kab tak. Vendor PO ke hisaab se maal bhejta hai aur apne invoice par PO number likhta hai.
Is GST charged on a purchase order?
No GST is paid on a PO itself. It's still worth showing the GST so the vendor's invoice matches, but the tax is charged on the vendor's tax invoice.
Can I claim input tax credit on a purchase order?
No. Input tax credit comes from the vendor's tax invoice or debit note, once the vendor reports it in their GSTR-1 (Section 16(2) of the CGST Act).
What is a PO number?
The unique number you give each order, such as PO/2026-27/001. The vendor quotes it on their invoice, so you can match bills to orders.
Who should sign a purchase order?
Someone allowed to commit your business to the purchase: the owner, a partner, a director, or a purchase manager with that authority.
Purchase order aur invoice mein kya fark hai?
PO buyer bhejta hai, supply se pehle, order dene ke liye. Invoice seller bhejta hai, supply ke samay ya baad mein, payment maangne ke liye. GST invoice par lagta hai, PO par nahi.
How soon must I pay a micro or small vendor?
If the vendor is a Udyam-registered micro or small enterprise, pay by the date you agreed in writing, and that period can't exceed 45 days from accepting the goods or services. With no agreed date, pay within 15 days of acceptance. Late payment carries compound interest at three times the RBI bank rate (Sections 15 and 16 of the MSMED Act).
More free formats
Guides to GST invoicing, quotations, challans and more: read the CredHill blog.
Last reviewed .