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Business Guide7 min read2026-03-01

Community Pharmacy Management

Daily operations, ABC inventory, billing software, GST, patient counseling — running a profitable medical store.

Running a successful medical store takes more than a Drug Licence. Here's the operating playbook.

Day-to-Day Operations

Morning (before opening)

  1. Check refrigerator temperature logs
  2. Verify cash and billing system
  3. Inspect expiry dates on new stock
  4. Update daily purchase register

During business hours

  1. Verify each prescription before dispensing
  2. Schedule H drugs — prescription mandatory
  3. Counsel patients on dosage and side effects
  4. Maintain sales register

End of day

  1. Close billing, reconcile cash
  2. Identify low-inventory items
  3. Raise purchase orders
  4. Update daily sales report

Inventory: ABC Analysis

  • A items — high-value, high-movement (antibiotics, chronic drugs)
  • B items — medium value and movement
  • C items — low value, slow movement

Plus: FIFO (first in, first out) to minimise expiry waste, and a MOQ reorder point per item to prevent stockouts.

Pharmacy Billing Software

Look for:

  • Barcode scanning
  • GST compliance (HSN codes)
  • Expiry alerts
  • Sales reports
  • Prescription tracking
  • Credit / debit notes

Popular options: Marg ERP, Busy, MedKart, Rx Pharmacy Software.

GST on Medicines

CategoryGST Rate
Life-saving drugs0%
Most medicines5%
Nutritional supplements12 – 18%
Ayurvedic formulations0 – 12%

Patient Counseling

  1. Explain dosage schedule clearly
  2. Warn about common side effects
  3. Advise on drug-food interactions
  4. Ensure full antibiotic course
  5. Counsel diabetics on monitoring

Profitability Tips

  1. Push generics — better margins, better for patients
  2. Stock OTC and non-Rx — cosmetics, vitamins (no Rx, good margin)
  3. Build doctor relationships — referrals
  4. Stock chronic disease drugs — repeat customers

FAQ

Profit margin in a medical store?
15 – 25% on branded; 30 – 50% on generics and OTC.
Best billing software?
Marg ERP and Busy are widely used and GST-compliant.
How to prevent expiry losses?
FIFO, software alerts, and returning near-expiry stock to distributors.
GST on medicines?
Most: 5%. Life-saving: 0%. Supplements: 12 – 18%.
How to grow the business?
Doctor referrals, home delivery, genuine medicines, good counseling, online presence.

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30 second ka check. Aapki eligibility + Phase 1 fee plan turant pata chal jaayega.

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