TaxTMI 
TaxTMI 
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?
Continuous Supply of Goods
25 May 2021 
4 Replies 
3035 Views Asked by
Continuous supply of goods permits periodic invoicing when a contract establishes recurrent deliveries and periodic billing.
A supply qualifies as a continuous supply of goods when, under contract, goods are agreed to be provided recurrently and the supplier invoices the recipient on a regular or periodic basis; mere multiple deliveries in a month do not suffice. If continuous supply is established, invoices must be issued before or at the time each periodic statement is issued or each payment is received. To use periodic invoicing and a single consolidated invoice, the contract must expressly create the recurrent supply and periodic invoicing arrangement. (AI Summary)
A supply qualifies as a continuous supply of goods when, under contract, goods are agreed to be provided recurrently and the supplier invoices the recipient on a regular or periodic basis; mere multiple deliveries in a month do not suffice. If continuous supply is established, invoices must be issued before or at the time each periodic statement is issued or each payment is received. To use periodic invoicing and a single consolidated invoice, the contract must expressly create the recurrent supply and periodic invoicing arrangement. (AI Summary)