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Expiry return

Sending near-expiry or expired stock back to the supplier for credit, on the supplier's own terms.

Whether an expiry return is accepted, and until when, depends on each company's and distributor's own terms.

Because the terms differ by company and distributor, the useful habit is to know each supplier's terms for the stock bought from them, and to see near-expiry batches early enough to act on them.

A claim can be refused for practical reasons: the batch cannot be traced to a purchase invoice, strips are cut or packs defaced, or quantities disagree with the stock record.

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

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.