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Stockist

The distributor that supplies medicines from the manufacturer to retail pharmacies.

The stockist sits between the manufacturer and the retail pharmacy. The company sells to the stockist at PTS; the stockist sells to the pharmacy at PTR; the pharmacy sells to the patient at or below MRP.

For a retail shop the stockist relationship governs more than price. It determines delivery frequency, which shapes how much stock has to be held; it determines credit terms, which shape working capital; and it administers expiry return claims, which determine whether near-expiry stock becomes credit or becomes a write-off.

Most Indian pharmacies deal with several stockists because no single one carries every company's products. That fragmentation is why purchase records tend to be scattered, and why a batch that cannot be tied to the right supplier invoice is such a common cause of a rejected expiry claim.

Scheme and free-goods offers are usually administered at stockist level too, which is what makes effective per-unit cost differ from the printed PTR.

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Related terms

PTS (Price to Stockist)The price a manufacturer or marketing company charges the stockist, before GST. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. Expiry returnSending near-expiry or expired stock back to the distributor for credit. Scheme goods (free goods)Extra units supplied free with a purchase, lowering the effective cost per unit. Purchase invoiceThe distributor's bill — the document every downstream record depends on.

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.