Home › Glossary › MRP (Maximum Retail Price)

MRP (Maximum Retail Price)

The maximum price at which a pack may be sold to a patient, inclusive of all taxes.

MRP is printed on the pack and is a ceiling, not a fixed price — a pharmacy may sell below it but never above. Critically, MRP is **inclusive of GST**, which is the opposite convention to PTR and PTS.

That difference is where most margin arithmetic goes wrong. Because MRP already contains tax, GST has to be removed before the retail margin is taken off when working backwards to a purchase price. Skipping that step overstates PTR by the whole GST factor.

It also means the gross profit on a pack is not simply MRP minus what you paid. The retailer remits output GST on the sale while claiming input credit on the GST paid at purchase, so profit has to be computed on an ex-GST basis.

For products under DPCO price control, the ceiling price is fixed by the regulator and revised periodically — MRP on those products is not a commercial decision.

Free, no signup — PTR / PTS calculator.

Open PTR / PTS calculator →

Related terms

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. DPCO (Drugs Prices Control Order)The order under which the government fixes ceiling prices for scheduled medicines. HSN codeThe Harmonised System of Nomenclature code that determines a product's GST treatment.

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.