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Return to vendor (RTV)

Sending stock back to the supplier, typically for expiry, breakage or wrong supply.

RTV covers any goods going back up the chain: near-expiry stock inside the claim window, damaged or broken packs, and items supplied in error. Each is handled differently by most distributors, and the documentation differs accordingly.

The commercial mechanism is the supplier's credit note, issued under Section 34 of the CGST Act, against which you reverse the corresponding input tax credit. Until the credit note arrives the return is an open item, and open RTVs are one of the most commonly untracked balances in a pharmacy.

Claims fail on traceability more than on principle. A batch that cannot be tied to a specific purchase invoice, or quantities that disagree with the stock record, will be queried whatever the merits.

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Related terms

Expiry returnSending near-expiry or expired stock back to the distributor for credit. Credit noteA document issued by a supplier reducing the value of an earlier invoice. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales. StockistThe distributor that supplies medicines from the manufacturer to retail pharmacies. 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.