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Expiry and breakage

The two kinds of unsellable stock: expired packs and physically damaged packs. Both come off the shelf, marked not for sale.

"Expiry and breakage" is how the trade refers to the two categories of stock that can no longer be sold: packs that have passed their printed expiry, and packs damaged in transit, in storage or at the counter — crushed strips, broken vials, torn cartons. In the shop they are two different problems with opposite remedies.

Either way the pack comes off the sellable shelf immediately. Expired stock cannot be sold at any price — Section 27 of the Drugs & Cosmetics Act makes the sale an offence regardless of discount or disclosure — and a damaged pack cannot be dispensed either. Common practice is to keep the segregated lot physically apart and marked "not for sale", so nobody bills it by accident while the claim is being raised, and so a drug inspector can see at a glance that it is not part of sellable stock.

Each company and distributor sets its own return terms, for expired and for damaged stock, and in both cases the batch has to be traceable back to a purchase invoice.

Record the two separately in the stock register. Putting expiry and breakage under one heading is the usual mistake: breakage is a storage and handling problem, expiry is a purchasing and rotation problem, and a single combined number tells you nothing about which one is eating the margin.

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Related terms

Expiry returnSending near-expiry or expired stock back to the supplier for credit, on the supplier's own terms. Return to vendor (RTV)Sending stock back to the supplier, typically for expiry, breakage or wrong supply. Near-expiry stockStock close enough to expiry that it must be sold, returned or written off soon. Credit noteA document issued by a supplier reducing the value of an earlier invoice. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales. Cold chainThe unbroken refrigerated storage and transport required for temperature-sensitive medicines.

All terms

Batch numberCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry and breakageExpiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.