Templates

Purchase order format with GST and terms, free in Excel, Word and PDF

A purchase order tells a supplier exactly what to send, at what rate, where and by when. Download the format with terms and conditions, fill it in, and send it before the goods are dispatched.

Free download, no sign-up

Filled with the sample shown. The Excel file has formulas for tax and totals.

In short

A purchase order is the buyer's written order to a supplier: items, quantities, agreed rates, delivery date and terms. The download here is free in Excel, Word and PDF, and in SimpleERP a purchase order becomes the supplier bill without retyping.

Lakshmi Steel Furnitures

GSTIN 33AAACL1234A1ZG

Purchase order

PO-2026-27-0014

Supplier: Tamil Nadu Steels

MS sheet 1.2 mm500 kg
Angle 25×25200 m
Bolts and nuts40 set

Order total₹71,697.00

What this document is for

A purchase order, or PO, is the first document in a purchase. You send it; the supplier delivers against it and bills you. When the bill arrives, you check it against the PO before paying, so a wrong rate or a short delivery is caught before money leaves.

It fixes the rate before dispatch. Steel prices move weekly; the PO records the rate you agreed today.
It is what you check the bill against. Ordered 500 kg, billed 520 kg: the PO settles it.
It tracks part deliveries. Each line shows ordered, billed and still to come.

What a purchase order must contain

No GST rule prescribes a PO format. These are the blocks a supplier needs to dispatch the right goods and bill them correctly.

Your business details: name, billing address, GSTIN and a contact for the delivery.
PO number and date, in one series per financial year, such as PO-2026-27-0014.
Supplier details: name, address and GSTIN, whose state code decides CGST and SGST or IGST on the bill.
Lines: description or grade, HSN code, quantity, unit, rate and GST rate.
Totals: taxable value, expected GST and the PO total.
Delivery address, expected date and terms and conditions: payment days, inspection, rejection and freight.

How to fill the template

Put your header in once
Replace Lakshmi Steel Furnitures with your name, address and GSTIN, and save the file as your blank copy.
Number and date the PO
Use the next number in your PO series. Ask the supplier to quote it on their invoice.
Add the supplier
Write the GSTIN in capitals. A supplier in your own state charges CGST and SGST; one in another state charges IGST.
Enter the lines with the agreed rate
Give the grade and size, such as MS sheet 1.2 mm, so nothing is open to interpretation. The Excel file computes amount, GST and total with formulas.
Edit the terms and send it
The download carries sample terms for payment days, inspection on receipt, rejection of damaged goods and freight. Change them to yours, sign, and send the PDF.

Item	HSN	Qty	Rate	Amount
MS sheet 1.2 mm	7209	500 kg	₹78.00	₹39,000.00
Angle 25×25	7216	200 m	₹96.00	₹19,200.00
Bolts and nuts	7318	40 set	₹64.00	₹2,560.00
Taxable value				₹60,760.00
CGST 9% + SGST 9%				₹10,936.80
Round off				₹0.20
PO total				₹71,697.00

The worked example in the download: Lakshmi Steel Furnitures orders from Tamil Nadu Steels (GST at 18% as an example)

Make it in SimpleERP instead

Raise the purchase order with the warehouse it should arrive at and the expected date. When the supplier's bill comes in, Convert to bill copies whatever is still open, and posting the bill receives the stock at cost.

Purchase order to bill without retyping. Part deliveries are normal; each line shows ordered, billed and remaining.
Rate, HSN and GST fill from the product, and the supplier's GSTIN decides CGST and SGST or IGST.
Notes and terms print on the PO, so your standard terms go out every time.
Posting the bill adds the stock to the warehouse, records input GST and adds the amount to what you owe the supplier.
The same bill cannot be entered twice. The supplier's bill number is checked first.

app.simpleerpsoftware.com/o/lakshmi-steel/inventory/stock

Stock on hand

Valued at average cost

ProductMainStore

Steel rack 4 shelf4012

Office chair mesh6418

LED panel 2×2146

Cable tray 3 m60

LED panel 2×2 and Cable tray 3 m below reorder level.

Steel rack 4 shelf · movements

03 OctINV-0213 Issued to Ravi Stores−2
01 OctBILL-0084 Received from Tamil Nadu Steels+20
29 SepWO-0017 Produced, work order+8

Stock by warehouse after the bill is posted.

Fields

Every field on a purchase order, and why

GST law prescribes the supplier's tax invoice (CGST Rules rule 46), not the purchase order. The fields here are what suppliers and auditors expect to see.

Field	Required	Why
Buyer name, billing address and GSTIN	Good practice	The supplier needs your GSTIN on the invoice so you can claim input tax credit.
PO number and date	Good practice	The supplier quotes it on the bill so the two can be matched.
Supplier name, address and GSTIN	Good practice	The state code decides whether the bill will carry CGST and SGST or IGST.
Description, HSN, quantity, unit and rate per line	Good practice	The goods and prices the supplier's bill must match.
Taxable value, GST rate and expected total	Good practice	Lets you check the bill's tax before paying.
Delivery address and expected date	Good practice	Tells the supplier which godown to send to and by when.
Terms and conditions	Good practice	Payment days, freight, inspection and rejection agreed in advance.
Authorised signature	Good practice	Shows the order was approved by someone who can commit the business.

Source: No GST format is prescribed; good practice, verified 10 October 2026.

Common mistakes

Mistakes to avoid on a purchase order

Ordering by a vague description such as "steel sheet" with no thickness or grade, then receiving the wrong material.
Leaving the rate blank to be filled by the supplier, which removes the reason for a PO.
Missing your own GSTIN on the PO, so the supplier's bill goes out without it and the input tax credit is at risk.
Paying the bill without matching it to the PO, so a quantity of 520 kg against 500 ordered goes through.
Giving no delivery address when you run more than one godown, so goods land where they are not needed.

Honest limits

A purchase order does not move stock or post to the books. The supplier bill does.
No approval chain with spending limits on POs. Roles decide who can confirm or cancel an order.
No e-way bill or e-invoice (IRN) generation. Your supplier generates those for the dispatch.

Getting started

Start with your first purchase order

Sign up with your phone number
Enter your business name and GSTIN; the state, chart of accounts and GST rates are set for you.
Add your raw materials
Name, HSN, GST rate, unit and purchase price, typed in or imported from a CSV file.
Add the supplier
Type the GSTIN and the state fills itself.
Raise the PO and send it
Type the lines, save and send, then print or download the PDF for the supplier.

FAQ

Questions, answered

Does a purchase order need GST?

No GST is charged on a purchase order; it is not a tax document. Showing the GST rate and the expected total is still good practice, here ₹71,697.00 on a taxable ₹60,760.00, so the supplier's invoice can be checked against it.

Is a purchase order mandatory under GST?

No. GST law requires the supplier's tax invoice, not a purchase order. Many buyers, especially larger companies, will not pay a bill without a matching PO number, which is why suppliers ask for one.

What terms and conditions should a purchase order have?

At least payment days, delivery date and place, who pays freight, inspection on receipt and what happens to rejected or short goods. Keep them short and the same on every PO, so suppliers know them.

Can I use this format in Excel with formulas?

Yes. The Excel download computes each line amount, the GST, the round off and the PO total with formulas. The Word file carries the same layout with the terms and conditions for editing.

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