Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Continuous Supply of Services”.
So what do you mean by”Continuous Supply of Services”?
“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, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may,
by notification, specify;
Conclusion:
Hence it is understood that the goods/services are supplied periodically and the payments are also made periodically,often monthly.For example,supplying bricks to builders is a continuous supply of goods because there will be periodic supply for a long time.