Continuous supply of goods :
As per Section 2(32) of the CGST Act 2017, continuous supply of goods means a supply of goods which is provided or agreed to be provided continuously or on recurrent basis, under a contract whether or not by means of wire, cable, pipeline or other conduit and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may subject to such conditions as it may by notification specify. From the above definition, it may be inferred that there are two important conditions to be satisfied for a supply to be called as continuous supply of goods:
a) The supply of goods should be provided on a continuous or recurrent basis
b) The supplier should be invoicing the recipient on a regular or periodic basis Once, these two conditions are satisfied, any supply will be considered as continuous supply of goods. For the purpose of continuous supply, it is necessary that successive statement of accounts or successive payments or both are involved for the purpose of determining the consideration for such supply. As per Section 31, in respect of continuous supply of goods, it has been stated that invoice should be issued before or at the time each such statement is issued or each such payment is received.