GST invoicing for pharmacy5 min read
Are You Struggling with GST Invoicing for Your Pharmacy?
Simplify GST compliance with Ferbz, designed for Indian pharmacies.
12%GST on most medicines
0%GST on essential drugs
11thGSTR-1 filing deadline
₹40LGSTIN mandatory above
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As a pharmacy
As a pharmacy owner in a Tier 2 city in India, managing GST invoicing can be a daunting task. Let's consider the example of Rohan, who owns a small pharmacy in a bustling street of Nagpur. Rohan's pharmacy caters to a loyal customer base of around 500 regular patients, with daily sales of approximately ₹50,000. However, with the introduction of GST, Rohan finds himself spending an additional 2-3 hours every evening generating invoices, calculating GST rates, and maintaining records. This is time taken away from more critical tasks like patient care, stock management, and customer service. The GST invoicing process is not only time-consuming but also prone to errors, which can lead to penalties and fines.
Rohan's pharmacy sells a mix of medicines, including generic and branded drugs, which attract a 12% GST rate. He also sells essential medicines like insulin and oral rehydration salts, which are exempt from GST. Moreover, he sells nutraceuticals and supplements, which attract an 18% GST rate. Managing these different GST rates and generating invoices for each type of product is a complex task. Rohan uses a paper register to record sales and then manually calculates the GST amount using an Excel sheet. However, this process is error-prone and time-consuming.
The problem of GST invoicing is further complicated by the requirement to obtain a GSTIN (Goods and Services Tax Identification Number) if the pharmacy's turnover exceeds ₹40 lakhs. Rohan's pharmacy has a turnover of ₹60 lakhs, so he needs to obtain a GSTIN and file monthly GST returns. The GST return filing process involves submitting GSTR-1 by the 11th of the following month and GSTR-3B by the 20th. Failure to file GST returns on time can result in penalties and fines, which can be a significant burden for small pharmacy owners like Rohan.
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How Pharmacy Owners
How Pharmacy Owners Manage This Today
Pharmacy owners like Rohan can manage GST invoicing using a combination of manual and semi-automated tools. Here are some steps they can follow:
- Maintain a paper register: Record all sales transactions in a paper register, including the date, time, product name, quantity, and amount.
- Use Excel sheets: Create an Excel sheet to calculate the GST amount for each sale. Use formulas to calculate the GST rate and amount for each type of product.
- Create invoices manually: Generate invoices manually using a printer or a software like Microsoft Word.
- Use WhatsApp groups: Create WhatsApp groups with suppliers and distributors to track orders and payments.
- Make phone calls: Make phone calls to suppliers and distributors to confirm orders and track delivery status.
However, these methods have limitations. Manual record-keeping and calculation of GST amounts can lead to errors, and generating invoices manually can be time-consuming. Moreover, using Excel sheets and paper registers can result in data duplication and inconsistencies. As per the GST regulations, pharmacies need to maintain accurate records of sales and purchases, including invoices, receipts, and payment records. The HSN code for medicaments (general) is 3004, and pharmacies need to use this code when generating invoices and filing GST returns.
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How Ferbz Solves
How Ferbz Solves This
Ferbz's bulk GST-compliant billing feature solves the problem of GST invoicing for pharmacies like Rohan's. This feature allows pharmacy owners to generate and send invoices to multiple patients in one click, with accurate calculation of GST rates and amounts. The feature also automatically generates invoices in the required format, with all the necessary details, including the GSTIN, HSN code, and GST rate.
With Ferbz, Rohan can replace his 45-minute nightly Excel session with a few clicks, generating accurate invoices and saving time. The feature also helps reduce errors and penalties, as it ensures that all invoices are generated in compliance with GST regulations. Moreover, Ferbz's purchase order management feature allows Rohan to raise POs to distributors, track delivery and payment status, and maintain accurate records of purchases and sales.
Ferbz's GST invoicing feature is designed to work seamlessly with the pharmacy's existing workflow, allowing Rohan to focus on patient care and customer service. The feature is also scalable, allowing pharmacy owners to manage multiple branches and outlets from a single dashboard.
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Frequently Asked Questions
The GST rate for most medicines, including OTC, generic, and branded drugs, is 12%. However, essential medicines like insulin and oral rehydration salts are exempt from GST, with a 0% GST rate. Nutraceuticals and supplements typically attract a 12% or 18% GST rate.
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Get Started with
Get Started with Ferbz
If you're a pharmacy owner struggling with GST invoicing, try Ferbz today. Our bulk GST-compliant billing feature can help you generate accurate invoices, reduce errors, and save time. Sign up for a free trial at https://dashboard.ferbz.com/ or contact our support team at support@ferbz.com to learn more about how Ferbz can help your pharmacy thrive. With Ferbz, you can focus on patient care and customer service, while we take care of your GST invoicing and compliance needs.
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