What is meant by Continuous Supply of Goods or Services ?
U/s 2(32), Continuous supply of goods means a supply of goods which is provided or agreed to be provided continuously or on recurrent basis. There should be a contract for such a supply requiring the supplier to issue invoices to the recipient on a regular or periodic basis. Also, the supply may or may not be through a wire, cable, pipeline or other conduit.
U/s 2(33), Continuous supply of services means a supply of services which is provided or agreed to be provided continuously or on recurrent basis under a contract. Such contract should be for a period exceeding 3 months, with periodic payment obligations.
The Government is also empowered to treat the supply of a particular category of goods or services as ‘continuous supply’, irrespective of the criteria specified above.