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Scheme goods (free goods)

Extra units supplied free with a purchase, lowering the effective cost per unit.

A scheme such as 10+1 supplies eleven units for the price of ten. The printed PTR does not change; what changes is the effective cost per unit across the whole quantity received.

That is the number worth comparing, rather than the headline discount. A 10+1 on a pack whose PTR is ₹79.37 brings the effective cost to roughly ₹72.15 per unit — close to what the stockist itself pays. Comparing schemes on effective per-unit cost rather than on the offer's size is the difference between a real saving and a larger holding of slow stock.

Schemes also carry a hidden cost: they push quantity into the shop. If the extra units move slowly, the saving is offset by expiry risk and by working capital tied up on the shelf, both of which are invisible in the offer itself.

For GST purposes free goods supplied as part of a scheme are treated differently from goods given away, and the treatment affects input credit — worth confirming with your CA where schemes are a large part of purchasing.

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Related terms

PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. StockistThe distributor that supplies medicines from the manufacturer to retail pharmacies. Expiry returnSending near-expiry or expired stock back to the distributor for credit. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales.

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.