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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.
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Running a successful medical store takes more than a Drug Licence. Here's the operating playbook.
Day-to-Day Operations
Morning (before opening)
- Check refrigerator temperature logs
- Verify cash and billing system
- Inspect expiry dates on new stock
- Update daily purchase register
During business hours
- Verify each prescription before dispensing
- Schedule H drugs — prescription mandatory
- Counsel patients on dosage and side effects
- Maintain sales register
End of day
- Close billing, reconcile cash
- Identify low-inventory items
- Raise purchase orders
- 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
| Category | GST Rate |
|---|
| Life-saving drugs | 0% |
| Most medicines | 5% |
| Nutritional supplements | 12 – 18% |
| Ayurvedic formulations | 0 – 12% |
Patient Counseling
- Explain dosage schedule clearly
- Warn about common side effects
- Advise on drug-food interactions
- Ensure full antibiotic course
- Counsel diabetics on monitoring
Profitability Tips
- Push generics — better margins, better for patients
- Stock OTC and non-Rx — cosmetics, vitamins (no Rx, good margin)
- Build doctor relationships — referrals
- 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.