Change some of your code to look like this:
Serial.print("data: [");
Serial.print(data); //shows the message
Serial.println("]");
if(strcmp(data, "on") == 0)
{
Serial.println("Turning LED on");
digitalWrite(led,HIGH);
}
if(strcmp(data, "off") == 0)
{
Serial.println("Turning LED off");
digitalWrite(led,LOW); // Turn the pin off
}
Show us the serial output.