Is GST applicable on incentive paid to salesperson

Shantilal Satra (Trainee) (55 Points)

27 January 2022  

Scenario 1:
A company pays its sales person incentive or commission on monthly basis on the total monthly sales done by the sales person. This incentive or commission is paid over and above the salary. In this case is GST applicable on the incentive or commission being paid by the company to the sales person?

Scenario 2:

A company has appointed wholesalers or distributors in a certain state to sell its products. In order to acquire new customers the company asks such wholesalers or distributors to take orders of smaller wholesalers (the company would directly bill and ship the products to such small wholesalers) and the existing wholesalers or distributors would get a fixed commission from the company on the order procured by them of new customers. Is GST applicable in this case wherein the company is paying commission or incentive to its distributors or wholesalers on orders of new customers acquired by them?