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Expiry return

Sending near-expiry or expired stock back to the distributor for credit.

Expiry returns are governed by each company's own returns policy rather than by statute. There is no legal window — the common pattern is a period running from some months before expiry to some months after, with the claim raised through the stockist rather than direct to the manufacturer.

Because the window is contractual, it is the operational deadline worth tracking rather than the expiry date itself. Stock that passes the return window without being claimed usually has to be destroyed instead, which is a worse outcome: destruction means an input tax credit reversal with no credit note against it.

Claims are commonly rejected for practical reasons — raised outside the window, batch not traceable to a purchase invoice, strips cut or packs defaced, or quantities that disagree with the stock record. All of those trace back to record-keeping rather than to the distributor being difficult.

Expired stock cannot be sold at a discount or otherwise. Section 27 of the Drugs & Cosmetics Act makes the sale an offence regardless of price or disclosure.

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Related terms

Credit noteA document issued by a supplier reducing the value of an earlier invoice. FEFO (First Expiry First Out)Dispensing the batch that expires soonest, rather than the one received first. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales. 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.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry 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.