QUESTION

My Client is providing catering services to other companies. He provides food on daily basis to other companies. Now my querry is: 1. Whether he can make single bill for full month supply at the end of month. 2. In case his single bill exceeds 50,000 whether he has to generate eway bill. 3. If he provides food exceeding Rs. 50,000/- in one day than he has to generate eway bill or not

ANSWER

Facts of the case:The supplier provides catering services. Whether issuance of a single invoice at the end of the month is permissible? Also, is there any need of generation of E-way bill or not.

Law Applicable:"SECTION 31 OF CGST ACT
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,

(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.

CGST RULE 138
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01 , electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal.

Interpretation:1. In case of continuous supply of services issuance of invoice is dependent on the contract that is in force between the supplier and the recipient. Invoice can be raised on the due date of payment, or receipt of payment or on completion of an event.

2. As per rule 138, Eway bill is to be generated when the movement of goods in a single consignment exceeds Rs. 50,000. In case the goods that are used for provision of services of Rs. 50,000 are supplied in lots and are of value of less than Rs. 50,000 then no E-way bill is to be generated. In your case a single bill of Rs. 50,000 would be of supply of both goods and services. The invoice would be generated for supply of catering services and not for supply of goods. Hence no E-way bill would be required in such a case. Although there might be a situation when you have to prove to the officer who obstructs in transit that the value of goods for the invoice of Rs. 50,000 is less than Rs. 50,000

3. If the supplier provides goods for more than Rs. 50,000 in one day then he needs to generate an E-way bill.

Conclusion:1. Invoice can be issued at the end of the month if it is continuous supply as per the contract.
2. & 3. E way bill is required to be generated when the value of goods exceeds Rs. 50,000 in single consignment.(Reply dt.1/2/2020)