Price to Retailer (PTR) and Price to Stockist (PTS) calculators with GST are fundamental financial tools in the Indian pharmaceutical industry. Whether you are managing stockist operations, distribution networks, or retail pharmacies, accurate pricing calculations protect your profit margins and ensure statutory GST compliance without manual calculation errors.
PTR ("Price to Retailer") refers to the price at which a retail chemist or pharmacy purchases medicines from wholesale distributors or stockists. PTS ("Price to Stockist") refers to the price at which the stockist/distributor buys products directly from the pharmaceutical manufacturer or marketing company. Accurate calculation ensures fair trade margins for every tier of the distribution hierarchy.
In the pharmaceutical trade, MRP is the maximum price a consumer pays and is inclusive of all taxes. Trade margins (20% for Retailer, 10% for Stockist) are calculated backwards from the base price after reverse calculating the GST component.
To calculate PTR, deduct the retailer margin from the MRP, then remove the GST component:
Retail Price = MRP × (100 - Retailer Margin %) ÷ 100
GST Factor = (100 + GST %) ÷ 100
Once the PTR is established, the stockist margin (typically 10%) is deducted from the PTR:
If promotional schemes (such as 10% cash scheme or 10+1 free goods) apply, the effective landing rate per unit is:
Reference guidelines under DPCO (Drug Price Control Order) & Free Trade Margins:
| Product Category | GST Slab | Retailer Margin | Stockist Margin |
|---|---|---|---|
| Scheduled Drugs (DPCO) | 12% | 16% (Mandatory) | 8% (Mandatory) |
| Non-Scheduled Formulations | 12% | 20% (Industry Standard) | 10% (Standard) |
| Nutraceuticals / Food Supplements | 18% | 20% - 30% | 10% - 12% |
| Generic Medicines | 12% | 25% - 50% | 10% - 15% |
| Life Saving Vaccines / Critical Care | 5% | 16% - 20% | 8% - 10% |
(1 / 11) × 100 = 9.09% (commonly simplified in trade as a 10% scheme). Similarly, a 5+1 free scheme equals (1 / 6) × 100 = 16.66% discount.