MY CLIENT IS A MOBILE SELLER AND HE IS RECEIVING TRADE DISCOUNT OR COMMISSION ON TARGET OR ALL TYPE OF SCHEME AND PRICE DROP AND REWARD FROM DISTRIBUTOR AND COMPANY AND SHOWING AS INDIRECT INCOME WITHOUT CHARGING GST ON ABOVE PLS ADVICE THAT WHETHER HE IS LIBEL FOR GST OR NOT AND WHAT TREATMENT IS TO BE DONE FOR ABOVE INDIRECT INCOME

Reply— Discounts like trade discount, quantity discount etc. are part of the normal trade and commerce, therefore pre-supply discounts i.e. discounts recorded in the invoice have been allowed to be excluded while determining the taxable value. Thus, GST is not applicable on trade/quantity discount.