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Retail vs wholesale drug licence

Two different licences, for selling to patients and for selling to other businesses.

A retail licence permits sale to the end consumer against a prescription where required. A wholesale licence permits sale to other licensees — pharmacies, hospitals, institutions. They are separate licences with different conditions, and holding one does not permit the activity of the other.

The qualification requirements differ. A retail licence requires a registered pharmacist to be present; wholesale conditions turn on competent staff and premises. Both require prescribed storage and record-keeping under Rule 65.

A shop doing both needs both, and the records must distinguish them. Selling institutional quantities on a retail licence is a common and avoidable licence problem.

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Related terms

Drug licence (Form 20 / Form 21)The retail licence required to sell medicines in India, issued by the state authority. Rule 65The rule in the Drugs & Cosmetics Rules 1945 setting out sale conditions and record-keeping. StockistThe distributor that supplies medicines from the manufacturer to retail pharmacies. Schedule XThe most restricted class under the Drugs & Cosmetics Rules, requiring a separate licence and register.

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.