Cash Discount amount Calculated on before VAT or After VAT

Discount is before the vat calculation 

Cash discount is calculated on total value including VAT whereas trade discount is considered before VAT.

Discount allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply.

Example: Company offers a 10 % discount on the sale of goods worth Rs. 200. If the company mentions the discount amount (Rs. 20) separately in the invoice, the value of the taxable supply will be Rs.180 (200–20). 

Let us consider an example of ABC, a manufacturer, selling tools and hardware like drills, polishers, spades etc. It sells a power drill to XYZ a wholesaler. The MRP is Rs. 5,500 but ABC sells it for Rs. 3,000. Currently, the invoice will look like-

https://cleartax.in/s/valuation-of-supply-under-gst/

Isn’t this a cash discount as well

Cash discount is offered to encourage buyers to pay their dues on or before due date. It is not known before or at the time of supply.

As I understand, the example cited above is on trade discount.

Oh I see I’m from England and they calculate like below:

How cash discounts work:

An example of how a cash discount is applied:

• Net price of goods: £200.00
• VAT Calculation:
• Goods £200.00
• Less 10% cash discount (£20.00)
• Goods after cash discount £180.00
• VAT @ 20% of £180.00 = £36.00
• Gross Invoice total £216.00

https://debitoor.com/dictionary/cash-discount

I’m back in india now and if VAT falls under indirect tax then

From the above discussion, we could come to a rationale conclusion that the nomenclature or method of disbursement of discount would not have any impact of such discount for computation of tax liability of the supplier.

https://icmai.in/TaxationPortal/upload/IDT/Article_GST/26.pdf