Reimbursement from supplier is direct income or indirect income

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(Querist)
11 April 2024 If i have purchased goods of rs 100 + gst 18 = 118 , my supplier allow me to sell at cost and reimburse me the the profit of 10 rs in each sale .
The reimbursement of rs 10 is shown as direct income or indirect (treating it as incentive) income tax and also suggest me gst implications from my side on this 10 rs.
If i treat it as direct income my income tax liability is lower . If i treat it as indirect my income tax liability would be highr
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
11 April 2024 Treat it as direct income and GST applicable.
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uma sharma

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uma sharma (Querist)
11 April 2024 Gst applicable on rs 10 is payable by supplier or by us ?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
11 April 2024 Payable by you and can be claimed from supplier.
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uma sharma

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uma sharma (Querist)
11 April 2024 Then invoice to be generated in name of supplier by me ?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
11 April 2024 Yes you are right treat it as commission income.

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