A purchase order is the buyer's side of the paperwork: a numbered, dated document that tells a supplier exactly what you want, at what price, delivered where and by when, on what payment terms. Once the supplier accepts it, the PO is a contract. This generator builds a professional B2B purchase order with your GSTIN, the vendor's details, line items with HSN and GST, delivery and payment terms, and exports a PDF you can email or send on WhatsApp — no login, nothing uploaded.
Why small businesses should use POs
Verbal orders work until the supplier ships 500 units instead of 50 or invoices at a rate you never agreed. A PO fixes quantity, rate, tax treatment, delivery date and place — so the supplier's GST invoice can be checked against it line by line (the "three-way match" of PO, invoice and goods receipt that every auditor loves). It also gives your accounts team a document to book a commitment before the invoice arrives, and it is the reference number a vendor prints on the delivery challan and invoice.
For MSME buyers there is another reason: if the supplier is a registered micro or small enterprise, Section 43B(h) allows your expense deduction only if you pay within the agreed credit period, capped at 45 days (15 days with no written agreement). A PO with clear payment terms is your evidence of the agreed period — the details are in Section 43B(h): the 45-day payment rule.
What a purchase order should contain
| Section | Details |
|---|---|
| Header | Your legal name, address, GSTIN, PO number, PO date, validity |
| Vendor | Name, address, GSTIN, contact person, vendor code if any |
| Ship-to / bill-to | Can differ — a warehouse vs the registered office |
| Line items | Description, HSN/SAC, quantity, unit, rate, discount, GST rate, amount |
| Totals | Taxable value, CGST/SGST or IGST, freight, round-off, grand total |
| Delivery terms | Date or lead time, Incoterm-style basis (ex-works, FOR destination), packing |
| Payment terms | Advance %, credit days, mode, bank details for supplier reference |
| Conditions | Quality, inspection, penalties for delay, cancellation, jurisdiction |
| Authorisation | Name and signature of the approver |
How to use the generator
- Enter your company profile once — it is saved locally and shared with the other Kaagazo document tools.
- Add the vendor and, if different, the delivery address. The tool reads the state code from the GSTIN to decide CGST/SGST versus IGST.
- Add line items with HSN/SAC and GST rate. Look up codes in the HSN finder.
- Set delivery date, payment terms (e.g. "30% advance, balance within 30 days of delivery") and any conditions.
- Download the PDF and send it. When the goods arrive, compare the invoice to the PO before approving payment.
Tips for cleaner procurement
- Number POs by year and sequence (PO-2627-0042) so the vendor and your team can quote them unambiguously.
- Quote rates exclusive of GST and state the rate per line; it prevents disputes when the slab changes, as it did in September 2025 — see GST 2.0 rate changes.
- Specify tolerance ("±5% quantity accepted") for bulk commodities.
- Use a blanket PO for repeat supplies over a period with call-offs against it.
- Verify the vendor's GSTIN before the first order so your ITC is safe: How to verify a GSTIN.
Related tools
- Proforma invoice — what a supplier sends before you raise the PO.
- GST invoice — the supplier's tax invoice against your PO.
- Delivery challan — accompanies the goods.
- Late payment interest — MSMED Act interest if you pay late.
- Business days calculator — count the 45-day window precisely.