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For continuous supply of goods, the tax invoice is to be issued:
AAt the end of the financial year
BOn the date of first supply
COn the date the contract is signed
DBefore or at the time each successive statement is issued or each successive payment is received
Answer & Solution
Correct answer: D. Before or at the time each successive statement is issued or each successive payment is received
1. Sec 31(4) of the CGST Act covers continuous supply of goods.
2. Invoice must be issued before or at the time each successive statement of account is issued OR each successive payment is received, whichever is earlier.
3. Time of supply is then determined under Sec 12(2) tied to that invoice date.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 31(4)_
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