Continuous Supply of Goods and Services under GST (2026): Invoice Timing under Section 31
CA Meet Dhrangadhariya 
May 8, 2026
CA Meet Dhrangadhariya May 8, 2026
Table of Contents
6 min readTable of Contents
Last updated: 06 October 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP
Quick summary
Most supplies are a single event - a sale, a job done, an invoice raised. A continuous supply is different: goods or services flow on a recurring basis under one contract, with invoicing and payment happening periodically rather than once. Getting the invoice timing right for a continuous supply matters because it directly feeds into time of supply - the date GST liability actually arises.
New to terms such as “statement of account” or “tax period”? See the technical terms explained in simple words further down.
A supply of goods provided, or to be provided, continuously or on a recurrent basis under a contract - often through a wire, cable, pipeline or similar conduit - where the supplier invoices the recipient periodically. A classic example is a brick supplier delivering batches to a builder over a long construction project, invoicing with each batch.
Under section 31(4) of the CGST Act, where successive statements of account or successive payments are involved, the invoice must be issued before or at the time each such statement is issued, or each such payment is received.
A supply of services provided, or to be provided, continuously or on a recurrent basis under a contract, with periodic payment obligations. Telecom and internet services, billed monthly under a standing contract, are the standard example.
Under section 31(5), the rule depends on how the contract fixes payment:
Under section 31(6), if a continuous service supply ceases under the contract before completion, the invoice must be issued at the time the supply stops, covering only the service actually delivered up to that point.
Example: A works contract begins on 1 August and is due to finish in March the following year, but the contractor stops work on 11 November because the contract is terminated. The contractor must issue an invoice on 11 November, for the value of work completed up to that date only - not the full contract value.
Separately from the continuous-supply-specific rules above, Rule 47 of the CGST Rules, 2017 fixes the general deadline for issuing a tax invoice for services:
Continuous supply invoicing is not just an administrative deadline - the invoice date (or the date it should have been issued) is itself one of the inputs that fixes time of supply, which decides which tax period a transaction is reported in and taxed under. Getting the trigger wrong - issuing late, or on the wrong basis for the type of contract - can shift GST liability into the wrong period entirely.
Continuous-supply contracts - SaaS subscriptions, rental agreements, long-term service contracts, construction and works contracts - are exactly where invoice timing most often gets mishandled, because the trigger depends on contract terms rather than a single, obvious event. Please reach out to our team and we will be happy to assist with invoicing compliance for continuous and recurring supplies.
| Term | What it means |
|---|---|
| Statement of account | A periodic billing statement issued under a continuous-supply contract, summarising charges for that period. |
| Tax period | The period (usually a month or quarter) for which GST liability is reported in a return - time of supply decides which tax period a transaction falls into. |
| Distinct persons | The same legal entity’s separate GST registrations (for example, branches in different States), treated as separate “persons” for GST purposes. |
| Non-banking financial company (NBFC) | A financial institution that provides banking-like services (loans, credit) without holding a full banking licence. |
A supply of goods or services provided on a continuous or recurrent basis under a contract, with periodic invoicing and (for services) periodic payment obligations - such as bricks delivered to a builder in batches, or a telecom connection billed every month.
Before or at the time each statement of account is issued, or each payment is received - whichever applies under the contract - under section 31(4) of the CGST Act.
It depends on the contract: if a due date for payment can be identified, on or before that due date; if it cannot, before or at the time payment is actually received; if payment is linked to completing an event, on or before that event’s completion date - all under section 31(5).
The invoice must be issued at the point the supply stops, covering only the service actually provided up to that point - under section 31(6).
30 days from the date of supply, under Rule 47 of the CGST Rules - extended to 45 days where the supplier is an insurer, a bank, or a non-banking financial company (NBFC).
Because the invoice date, or the date it should have been issued, is itself part of how “time of supply” is calculated - getting the invoicing timing wrong can shift a transaction into the wrong tax period and misstate GST liability for that period.
This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.
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