Indian Pharmacy Glossary

Batch numberThe manufacturer's identifier for a specific production lot, printed on the pack. Breakage and damageStock lost to physical damage rather than to expiry. CDSCOThe Central Drugs Standard Control Organisation, India's national drug regulator. CGST, SGST and IGSTThe three components GST is split into, depending on whether a sale crosses a state border. Cold chainThe unbroken refrigerated storage and transport required for temperature-sensitive medicines. Credit noteA document issued by a supplier reducing the value of an earlier invoice. DPCO (Drugs Prices Control Order)The order under which the government fixes ceiling prices for scheduled medicines. Drug licence (Form 20 / Form 21)The retail licence required to sell medicines in India, issued by the state authority. Expiry returnSending near-expiry or expired stock back to the distributor for credit. FEFO (First Expiry First Out)Dispensing the batch that expires soonest, rather than the one received first. Generic vs branded medicineSame active molecule, different name and usually a very different price. GSTR-1The monthly or quarterly GST return reporting outward supplies — a pharmacy's sales. GSTR-3BThe summary GST return through which tax is paid and input tax credit is claimed. HSN codeThe Harmonised System of Nomenclature code that determines a product's GST treatment. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales. Loose sale (cut strip)Selling part of a strip rather than the whole pack. MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. Narcotic registerThe dedicated record required for narcotic and psychotropic substances. Near-expiry stockStock close enough to expiry that it must be sold, returned or written off soon. NPPAThe National Pharmaceutical Pricing Authority, which fixes ceiling prices for scheduled medicines. Pack factor (units per pack)How many dispensable units a pack contains — the number that makes stock counts comparable. Pharmacist registrationThe state pharmacy council registration a practising pharmacist must hold. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. PTS (Price to Stockist)The price a manufacturer or marketing company charges the stockist, before GST. Purchase invoiceThe distributor's bill — the document every downstream record depends on. Red-border warning labelThe mandatory red-bordered box on Schedule H1 packs. Reorder levelThe stock quantity at which a medicine should be reordered. Retail vs wholesale drug licenceTwo different licences, for selling to patients and for selling to other businesses. Return to vendor (RTV)Sending stock back to the supplier, typically for expiry, breakage or wrong supply. Rule 65The rule in the Drugs & Cosmetics Rules 1945 setting out sale conditions and record-keeping. Rx symbolThe mark on a pack indicating a prescription-only medicine. Salt compositionThe active molecule or molecules in a pack, with strengths. Schedule HA class of prescription-only medicines under the Drugs & Cosmetics Rules 1945. Schedule H1Prescription-only medicines that additionally require a dedicated register entry under Rule 65. Schedule XThe most restricted class under the Drugs & Cosmetics Rules, requiring a separate licence and register. Scheme goods (free goods)Extra units supplied free with a purchase, lowering the effective cost per unit. Shortbook (short book)The record of medicines a customer asked for that were out of stock. Stock rotationArranging stock so the soonest-expiring units are dispensed first. StockistThe distributor that supplies medicines from the manufacturer to retail pharmacies.