What this template includes
- Buyer details
- Your company name, billing address, GSTIN, state and state code, and logo.
- PO details
- PO number, PO date, supplier quotation reference and required-by date.
- Supplier
- Supplier name, address, GSTIN, state and contact person.
- Deliver to
- Delivery address and state, if different from your billing address.
- Items
- Description, HSN/SAC, quantity, unit, agreed rate, discount and GST rate.
- Expected tax
- CGST and SGST for a supplier in your state, or IGST for a supplier in another state.
- Terms
- Delivery date, freight, payment terms and any warranty or return conditions.
- Approval
- Prepared by, approved by and the supplier’s acceptance.
Example use case (illustrative)
A Nagpur stationery distributor (sample GSTIN 27ABCDE1234F1Z5) orders 200 reams of A4 paper from a supplier in the same state and 50 boxes of files from a supplier in Chhattisgarh. It raises two POs: the first shows CGST and SGST, the second shows IGST, each with the HSN code and rate agreed in the supplier’s quotation.
When the goods arrive, the accounts team checks each supplier’s tax invoice against the PO. A line billed at a different rate or HSN is queried before payment, not after the return is filed.
How to fill in the GST purchase order
- Add your details and PO number. Enter your business name, GSTIN and state, a unique PO number and the PO date.
- Enter the supplier and check the GSTIN. Add the supplier’s name, address, state and GSTIN, and confirm the GSTIN format before issuing.
- List items with HSN and rate. Describe each item, add the HSN code, quantity, unit, agreed rate and the expected GST rate.
- Check the tax split. Use CGST + SGST if the supplier is in your state and the goods are delivered there; use IGST if the supplier is in another state.
- Set delivery, payment and approval. Give the delivery date and address, payment terms and approver, then download the PDF and send it.
Why put GST details on a purchase order
A PO is not a tax document, so GST on it is your expectation, not a charge. Showing it is still worth the effort: the approver sees the full outgo including tax, the supplier knows the HSN and rate you expect, and your accounts team can check the supplier’s tax invoice against it before booking input tax credit.
The supplier’s tax invoice is what decides the GST actually charged, and it is the document you use to claim credit. If the rate or HSN on the invoice differs from the PO, raise it with the supplier before payment.
Read more: GSTIN verification: what to check
CGST + SGST or IGST on a PO
The split follows the supplier’s invoice, which depends on the supplier’s location and the place of supply. For a typical purchase of goods delivered to you, a supplier in your own state charges CGST and SGST, and a supplier in another state charges IGST. Bill-to-ship-to deals and deliveries to a third party can change the answer, so check unusual cases with your adviser.
Read more: CGST vs SGST vs IGST explained
PO vs invoice, and a light approval routine
You, the buyer, issue the purchase order; the supplier issues the tax invoice after supplying. Many businesses pay only when three documents agree: the PO, the goods receipt and the supplier’s invoice.
- Set a value above which a second person must approve the PO.
- Quote the supplier’s quotation so the approver can see where the rate came from.
- Issue a revised PO, with the same number and a revision mark, if quantity, rate or dates change.