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NPPA

The National Pharmaceutical Pricing Authority, which fixes ceiling prices for scheduled medicines.

NPPA administers the Drugs Prices Control Order. It fixes ceiling prices for scheduled formulations — broadly the National List of Essential Medicines — and monitors prices of non-scheduled ones, where the permitted annual increase is capped.

For a pharmacy the consequence is that some products carry a regulated MRP that is revised periodically, and trade margins on them are lower than the conventional retail figure. Applying a standard margin assumption to a price-controlled product gives the wrong purchase price.

Price revisions also mean old and new stock of the same medicine can carry different printed MRPs on the shelf at the same time. Selling above the current notified ceiling is an offence regardless of what an older pack has printed on it.

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Related terms

DPCO (Drugs Prices Control Order)The order under which the government fixes ceiling prices for scheduled medicines. MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. CDSCOThe Central Drugs Standard Control Organisation, India's national drug regulator. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST.

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.