A recurring invoice is an invoice generated automatically on a fixed schedule, such as monthly or quarterly, for the same customer and similar charges. It suits rentals, AMCs, retainers, subscriptions and regular supplies. Under GST, each recurring invoice is a normal tax invoice with its own serial number, issued within the time limits that apply to the supply, including the rules for continuous supply.
If you bill the same customer for the same thing every month, typing a fresh invoice each time is a waste of hours and an invitation for errors. Recurring invoices solve that: set the schedule once, and the invoice is created and sent on time, every time.
This guide explains what recurring invoices are, which businesses benefit, how GST timing applies to them, how to set them up step by step, and the pitfalls to watch.
What is a recurring invoice?
A recurring invoice is an invoice that is generated automatically at regular intervals using a saved template: the same customer, the same items or services, the same rate, on a defined schedule.
It is not a special type of tax document. Each instance is a normal tax invoice that must carry all the particulars in Rule 46 of the CGST Rules, including its own consecutive serial number. The only difference is how it is produced. See what is an invoice for the basics.
Which businesses use recurring invoices?
| Business | Recurring charge | Typical frequency |
|---|---|---|
| Commercial landlord | Office or shop rent | Monthly |
| AMC provider | Annual maintenance of equipment | Monthly, quarterly or annual |
| Digital marketing agency | Retainer fee | Monthly |
| CA or law firm | Compliance retainer | Monthly or quarterly |
| SaaS or software vendor | Subscription licence | Monthly or annual |
| Water or gas supplier | Regular deliveries | Weekly or monthly |
| Security or housekeeping agency | Manpower services | Monthly |
| Coaching or training institute | Course fee instalments | Monthly |
| Equipment rental | Machine or vehicle hire | Monthly |
The common thread: predictable, repeating supplies under an ongoing agreement.
How does GST timing apply to recurring invoices?
Recurring billing still has to follow GST invoice timing.
Services
Rule 47 requires a tax invoice for services to be issued within thirty days from the date of supply of service. Insurers, banking companies and financial institutions including NBFCs have forty-five days. A monthly retainer billed on the 1st of the following month falls comfortably within this.
Continuous supply
For services supplied continuously under a contract with periodic payments, GST law ties the invoice to the payment schedule: broadly, the invoice is due on or before the due date of payment, or, if no due date can be determined, when the supplier receives payment, or on completion of the event to which payment is linked. Contracts for rent, AMCs and retainers usually fall here. Goods supplied continuously follow similar logic, with invoices issued when each statement is issued or payment is received.
The practical takeaway: align your recurring schedule with the payment dates in your contract, and generate the invoice on or before the payment due date.
For how tax liability arises in detail, see time of supply under GST.
How do you set up recurring invoices? Step by step
- Confirm the agreement. Write down the amount, frequency, start date, end date or renewal, and payment due date.
- Create the customer record. Name, address, GSTIN, state and email or WhatsApp number.
- Create the invoice template. Items or services, HSN or SAC codes, rate, GST rate, place of supply and payment terms.
- Set the schedule. Frequency (weekly, monthly, quarterly, annually), the day of generation and the first invoice date.
- Set the end condition. A fixed number of invoices, an end date, or until cancelled.
- Choose draft or auto-send. Auto-send for fixed charges; draft-for-review for variable ones such as usage-based billing.
- Attach payment options. A UPI link or bank details, plus automatic reminders on the due date.
- Handle e-invoicing. If you are covered by e-invoicing, make sure each generated B2B invoice gets its IRN.
- Review monthly. Check the invoices generated, payments received and any customers whose contracts ended.
Worked example: a monthly AMC with a mid-year increase
A Bengaluru firm services lifts for a housing society in Bengaluru (intra-state, so CGST+SGST). The contract:
- Monthly AMC fee: ₹12,000
- GST assumed at 18% (confirm against your SAC code)
- Billed on the 1st of each month, payable by the 10th
- Fee rises 8% from 1 January
Monthly invoice from October to December:
| Line | Amount (₹) |
|---|---|
| AMC fee | 12,000.00 |
| CGST @ 9% | 1,080.00 |
| SGST @ 9% | 1,080.00 |
| Total | 14,160.00 |
From January: new fee = ₹12,000 × 1.08 = ₹12,960.
| Line | Amount (₹) |
|---|---|
| AMC fee | 12,960.00 |
| CGST @ 9% | 1,166.40 |
| SGST @ 9% | 1,166.40 |
| Total | 15,292.80 |
Prorated case: if the increase had started on 16 January instead, January's invoice would need two lines. January has 31 days, so 15 days at the old rate and 16 at the new:
- Old rate: ₹12,000 × 15/31 = ₹5,806.45
- New rate: ₹12,960 × 16/31 = ₹6,689.03
- Taxable value: ₹12,495.48
- CGST @ 9%: ₹1,124.59; SGST @ 9%: ₹1,124.59
- Total: ₹14,744.66
Showing both lines on the invoice makes the calculation easy for the society's treasurer to check.
Fixed vs variable recurring invoices
| Type | How it works | Example | Best setting |
|---|---|---|---|
| Fixed | Same amount each period | Rent, retainer | Auto-send |
| Variable | Base fee plus usage | Cloud hosting, metered water | Draft for review |
| Instalment | Fixed amount for a fixed number of periods | Course fee in 6 instalments | Auto-send with end count |
| Prepaid | Billed at the start of the period | Annual software licence | Auto-send before period starts |
| Postpaid | Billed after the period | Manpower billing by attendance | Draft, then add actual quantity |
What about payment collection?
A recurring invoice only solves half the problem. To close the loop:
- Add a payment link so the customer can pay on receipt.
- Send a reminder a few days before and on the due date. See payment reminder templates.
- Track overdue recurring customers separately; a missed payment on a monthly plan compounds quickly.
- Pause, do not delete, the schedule for customers in dispute, so you do not keep generating invoices that will be contested.
How do you manage recurring invoices across a year?
A recurring schedule is not "set and forget". A short monthly and yearly routine keeps it accurate.
Monthly checklist
- Review the list of invoices the schedule is about to generate.
- Confirm any variable quantities, such as extra hours or units consumed.
- Check that IRNs were generated for B2B invoices if you are covered by e-invoicing.
- Match payments received against recurring invoices and chase gaps the same week.
- Note any customer who has asked to pause, upgrade or cancel.
Yearly checklist
| Task | When | Why |
|---|---|---|
| Start the new invoice series | 1 April | Numbers must be unique for the financial year |
| Apply contract escalations | On the anniversary date | Avoid billing old rates for months |
| Recheck GST rates and SAC/HSN codes | Whenever rates change, and at year start | Old templates carry old rates |
| Confirm customer GSTIN and address | Annually | Wrong details block the customer's credit |
| Review contracts ending in the year | At year start | Set end dates on schedules |
What if a customer pays annually but you bill monthly?
Some customers prefer to pay a year upfront while you invoice monthly. In that case the upfront payment is an advance, and each monthly invoice is adjusted against it. Keep a running balance on each invoice so the customer can see how much of the advance remains. See advance payment under GST for how tax applies.
How do you pause, change or end a recurring invoice?
Schedules are easy to start and easy to forget. Build a routine for changes.
Pausing
If a client asks to pause a service, for example a gym membership or AMC suspended for a month, stop the schedule for that period rather than raising and then cancelling an invoice. Note the reason on the client record.
Changing the amount
Price changes should take effect from a clear date. Edit the template with the new rate and the effective date, and check the next generated invoice before it goes out.
Ending the contract
When services stop before the contract's end, Section 31(6) of the CGST Act requires the invoice to be issued when the supply ceases, for the supply made up to that point. So:
- Stop the schedule from the end date.
- Raise a final invoice for the period actually served.
- Issue a credit note if an invoice was already raised for a period not served.
Worked example
An office-cleaning firm in Navi Mumbai bills ₹18,000 a month in advance on the 1st. The client ends the contract on 20 June, after the June invoice was raised. If the contract prorates by days, June's value should be ₹18,000 × 20 ÷ 30 = ₹12,000. The firm issues a credit note for ₹6,000 plus the GST on it, and ends the schedule.
Common mistakes with recurring invoices
- Forgetting to stop the schedule when a contract ends, then issuing invoices that need credit notes.
- Outdated GST rates carried forward in old templates. Rates were restructured from 22 September 2025; review every recurring template.
- Not updating the customer's GSTIN or address after they change it.
- Auto-sending variable bills without checking usage.
- Ignoring the contract's payment dates and generating invoices too late for GST timing.
- Duplicate invoices when a recurring invoice runs and someone also creates a manual one.
- No escalation clause written into the template, so annual increases are forgotten.
How software handles recurring billing
Recurring invoices are one of the clearest wins from billing software. Billing Software by Betterwork, for instance, lets you set recurring GST invoices on a schedule, share them on WhatsApp with a UPI payment link and send automatic payment reminders, while each invoice still gets its own number and, where applicable, its e-invoice IRN. If you bill services on retainers, also see billing for service businesses and invoice payment terms. For a walkthrough, you can book a demo.
Key takeaways
- A recurring invoice is a normal tax invoice generated on a schedule.
- Each instance needs its own serial number and all Rule 46 particulars.
- Service invoices are due within thirty days of supply; continuous supplies follow the contract's payment schedule.
- Prorate mid-period changes and show the calculation on the invoice.
- Review templates for GST rate changes, GSTIN updates and contract end dates.
- Pair recurring invoices with payment links and reminders.
This guide is general information, not tax advice. Rules last checked on 20 October 2026; confirm with your tax professional for your situation.