Purchase Order Generator India 2026

A purchase order (PO) is a formal commercial document issued by a buyer to a seller, specifying items, quantities, agreed prices, and delivery terms. Once accepted by the seller, it becomes a binding contract. POs help track procurement, manage budgets, and maintain audit trails for GST and income tax compliance.

Including HSN codes in your PO ensures the vendor raises the tax invoice with the correct GST rate, which is essential for claiming Input Tax Credit (ITC). Mismatched HSN codes can lead to ITC denial during GST audits. Businesses with turnover above ₹5 crore must use 6-digit HSN codes on invoices.

Common options include Net 30 (standard B2B, 30 days from invoice date), Net 60 (for large orders), Advance (for new vendors or high-value items), or COD (Cash on Delivery). Choose terms based on your cash flow, vendor trust level, and the order value.

No, purchase orders do not require registration or stamp duty in India. They are commercial documents and become binding contracts once accepted by the vendor (verbally, in writing, or by performance). For high-value contracts, consider a formal agreement or addendum with stamp duty.

A purchase order is issued by the buyer before the transaction, authorising a purchase. An invoice is issued by the seller after goods/services are delivered, requesting payment. The PO number is typically referenced on the corresponding invoice for matching and reconciliation.