Purchase documents · buyer-issued

Purchase order format — every field explained, with an example.

A purchase order is what you send a supplier to place an order — before any goods move and before any GST applies. Here's exactly what it needs, worked through on a real example.

Reviewed July 2026
6 min read
CA Anil Agarwal & the TatvaBooks team

What is a purchase order?

A purchase order (PO) is the document a buyer issues to a supplier to formally place an order — what to supply, how much, at what price, and by when. It's the buyer's side of the transaction, raised before anything ships. The supplier then either confirms the PO or raises queries, and once goods or services move, they issue their own tax invoice referencing the PO number.

A PO is not a tax document — it carries no GST liability on its own. But a well-structured PO makes the eventual invoice match cleanly, which is exactly where most purchase-to-pay disputes come from: a PO that said one rate and an invoice that says another.

Fields a purchase order needs

Buyer details — your business name, address, GSTIN and the person/department raising the order.
Supplier details — supplier's name, address and GSTIN.
PO number and date — a unique, sequential reference the supplier will quote back on their invoice.
Item table — description, HSN code, quantity, rate and amount for each line.
Delivery date and terms — when and where the goods must reach you (e.g. "Ex-works" or "Delivered at site").
Payment terms — e.g. "30 days from invoice date" or "50% advance, balance on delivery".
Terms & conditions — quality/inspection clauses, penalty for late delivery, cancellation rights.

Worked example

A stationery buyer placing a bulk order with a supplier. Every field above is filled in below — this is the shape a real PO takes.

Purchase Order

PO No. PO-2026-0142 · Date: 02-07-2026

Delivery by: 15-07-2026

Delivery terms: Delivered at buyer's warehouse

Buyer

Anmol Retail Pvt Ltd

FC Road, Pune, Maharashtra

GSTIN: 27AAECA1234F1Z5

Supplier

Sahyadri Paper & Stationers

MIDC, Bhosari, Pune, Maharashtra

GSTIN: 27AABCS5678G1Z2

Description	HSN	Qty	Rate (₹)	Amount (₹)
80 GSM A4 Copier Paper (500 sheets/ream)	4802	200 Ream	285.00	57,000.00
Gel Pen, Blue — Box of 10	9608	50 Box	180.00	9,000.00
Lever Arch File, A4	4820	100 Nos	95.00	9,500.00
Order value (before GST)				75,500.00

Payment terms

30 days from invoice date, via bank transfer.

Terms & conditions

Goods subject to quality inspection on receipt. Short/damaged supply to be replaced within 3 days at supplier's cost.

Note there's no GST column on the PO itself in this example — the tax gets calculated and charged on the supplier's tax invoice, which references PO-2026-0142.

Purchase order vs invoice

These two get confused constantly because both list items, quantities and amounts. The difference is who issues them and what legal weight they carry.

	Purchase order	Tax invoice
Who issues it	The buyer — it's an order placed on a supplier.	The seller — it's a demand for payment for goods/services already supplied.
When it's raised	Before the goods or services move — it's a commitment to buy.	At or after supply — it fixes the GST liability and payment due date.
Tax document?	No. A PO has no GST implication by itself.	Yes. A tax invoice under Rule 46 is what the buyer needs to claim ITC.
What happens next	Supplier accepts, ships, and raises a tax invoice referencing the PO number.	Buyer books the purchase, matches it against the PO and GRN, and pays.

For the invoice side of this — the fields Rule 46 actually mandates — see our invoice format guide.

Raising and tracking POs in TatvaBooks

Typed-out POs in Word or Excel drift from what actually gets billed — a rate gets fat-fingered, an HSN code doesn't match, and reconciliation becomes a monthly headache. In TatvaBooks you raise a purchase order with the same item master used across quotations and invoices, track whether it's open, partially received or closed, and match the supplier's tax invoice back to it before you approve payment — create this free in TatvaBooks, no download required. See the full GST billing workflow or the cloud accounting overview.

Frequently asked questions

What is a purchase order (PO) format?

A purchase order is the document a buyer sends to a supplier to formally place an order. It states what's being bought, in what quantity, at what agreed rate, and by when it's needed. The standard fields are a PO number and date, buyer and supplier details, an itemised table (description, HSN code, quantity, rate, amount), delivery date and terms, payment terms, and general terms & conditions. It is not a tax invoice — GST is not charged on a PO itself; the supplier raises a separate tax invoice once they ship.

Is a purchase order legally binding?

Once the supplier accepts it — usually by confirming or by shipping against it — a PO functions as a binding order under general contract law, even though GST law doesn't treat it as a tax document. That's why the terms (price, quantity, delivery date, payment terms) need to be precise: a vague PO leads to disputes over what was actually agreed.

Does a purchase order need a GSTIN or HSN code?

It's not legally mandatory the way it is on a tax invoice, but including your GSTIN, the supplier's GSTIN, and HSN codes per line item is good practice — it means the tax invoice the supplier eventually raises will match the PO exactly, with no rate or code mismatch to chase down later.

What is the difference between a purchase order and a purchase invoice?

A purchase order is issued by the buyer before the goods move — it's a request to supply at agreed terms. A purchase invoice (the supplier's tax invoice) is issued by the seller after supply — it's what creates the GST liability and the payment obligation. A well-run purchase process links the two: PO number referenced on the invoice, invoice matched back to the PO and the goods receipt note (GRN) before payment is released.

Can I create and track purchase orders in TatvaBooks?

Yes. TatvaBooks lets you raise a purchase order with itemised line items and HSN codes, track its status (open, partially received, closed), and record a supplier's tax invoice against it — quantities and rates carry over so nothing needs re-typing. It's part of the Business plan (₹599/month); Solo (₹0) covers invoicing and expense tracking for solopreneurs who don't run a formal purchase cycle.

How do I number purchase orders?

There's no legal numbering mandate for POs (unlike tax invoices, which must be sequential per Rule 46). Even so, a consistent scheme — e.g. PO-2026-0001 — makes it far easier to match invoices back to orders during purchase reconciliation and audits. Keep the sequence unbroken per financial year for the same reason you would for invoices: traceability.

Keep going.

Related formats

On the product

Free on Solo · no card · India-hosted

Raise purchase orders that match your invoices, every time.

Item master, HSN codes and rates carry through from PO to purchase invoice — no re-typing, no mismatches at reconciliation.

Request beta access See GST billing