Continuous Supply of Goods

[Kaustubh Karandikar]

XYZ is supplying Corrugated Boxes as packing materials to their customer. The deliveries are approx. 10 to 15 truck loads in a month. The customer is insisting XYZ to follow the provisions of ‘continuous supply of goods’ and supply the goods under a delivery challan and prepare one single tax invoice for the entire deliveries during the month. Is XYZ eligible to follow this procedure? If no, then this provision is applicable for which type of supplies?

AI Summary

Customer Seeks Continuous Supply Status for Corrugated Boxes Under GST; Experts Discuss Contract Modifications XYZ is supplying corrugated boxes and their customer requests that these be treated as a 'continuous supply of goods' under GST, allowing for a single tax invoice for all monthly deliveries. According to the CGST Act, 2017, continuous supply involves regular or periodic invoicing under a contract. Rajagopalan Ranganathan explains that invoices should align with statements or payments. Ganeshan Kalyani believes the customer's request is not feasible. Shilpi Jain suggests modifying the contract to specify periodic invoicing to qualify as continuous supply. YAGAY and SUN agree with the experts' opinions.