Question 13:

4. Can a supplier of goods send goods on challan to his frequent buyer and issue tax invoice on monthly basis? Any issue?  Example a road contractor, gives open order for supply of RMC at construction site. Now instead of issuing invoice for each truck, can trucks be sent on challan. And single invoice issued at end of month.

Answer:

As per section 31 for supply of goods invoice should be raised before or at the time of movement of goods The facility you are looking for is given for continues supply of goods but it is different from the term you are using ( frequent buyer) The term continues supply of goods is defined as follow Section 2(32) (32) '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 a 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; ============================                                                ===========================================                ======================= So in our opinion yoy have to issue invoice on every supply because your case is not covered under the definition of continues supply    (Reply Dt. 18/01/2018)