GST invoicing for pharmacy5 min read
Are Refill Reminders and GST Invoicing Eating Into Your Pharmacy's Profits?
Automate GST billing with Ferbz and reduce errors
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, you understand the challenges of managing a small business. One of the most significant issues you face is ensuring that your chronic patients return for their medication refills on time. For instance, consider a patient with diabetes who needs to refill their prescription every month. If they don't return for their refill, not only do they risk their health, but you also lose revenue. According to the Indian pharmacy industry, the average revenue lost per patient due to non-adherence to medication is around ₹1,500 per month. With an average of 50 chronic patients, this translates to a loss of ₹75,000 per month.
Moreover, you also spend a significant amount of time on GST invoicing. As a pharmacy owner, you are required to generate and send invoices to your patients, which can be a time-consuming process. You need to ensure that your invoices are GST-compliant, which means you need to calculate the correct GST rate for each medication. For example, most medicines, including OTC, generic, and branded, attract a 12% GST rate, while essential medicines like insulin and oral rehydration salts are exempt from GST. This can be a daunting task, especially if you have a large number of patients.
In addition to these challenges, you also need to manage your inventory and ensure that your stock does not expire. This can be a significant problem, especially if you have a large inventory of medications with different expiry dates. According to a study, the average pharmacy loses around 5% of its inventory due to expiry, which can translate to a significant loss of revenue.
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How Pharmacy Owners
How Pharmacy Owners Manage This Today
As a pharmacy owner, you may be using various methods to manage your patients' refills and GST invoicing. Here are some steps you can take to manage these tasks without any software:
- Maintain a patient register: Keep a register of all your patients, including their medication details and refill dates. This will help you track when each patient is due for a refill.
- Use WhatsApp groups: Create WhatsApp groups for your patients and send them reminders when their refills are due.
- Make phone calls: Call your patients to remind them of their refills.
- Use Excel: Use Excel to generate invoices and calculate GST. You can create a template with the relevant fields, including patient details, medication, and GST rate.
- Keep a stock register: Maintain a register of your inventory, including the expiry dates of each medication.
However, these methods have their limitations. For instance, maintaining a patient register and stock register can be time-consuming and prone to errors. Using WhatsApp groups and making phone calls can also be time-consuming, especially if you have a large number of patients. Using Excel to generate invoices and calculate GST can be complex, especially if you are not familiar with the software.
It's also important to note that as a pharmacy owner, you need to comply with GST regulations. For example, you need to generate a tax invoice for each sale, which includes the GST rate and amount. You also need to file your GST returns on a monthly basis, which includes GSTR-1 and GSTR-3B. According to the GST regulations, pharmacies with a turnover above ₹40 lakhs need to obtain a GSTIN and file their returns on a monthly basis.
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How Ferbz Solves
How Ferbz Solves This
Ferbz is a SaaS platform that can help you manage your patients' refills and GST invoicing. The platform has a feature that allows you to send automatic reminders to your patients when their refills are due. This feature replaces the need for manual phone calls and WhatsApp messages, saving you time and increasing patient adherence.
Ferbz also has a feature that allows you to generate GST-compliant invoices with just one click. The platform calculates the correct GST rate for each medication, eliminating the need for manual calculations and reducing errors. This feature replaces the need for Excel and other software, saving you time and increasing efficiency.
In terms of inventory management, Ferbz has a feature that allows you to track the expiry dates of your medications. The platform sends you alerts when a medication is near its expiry date, allowing you to take action before it expires. This feature helps you reduce waste and increase revenue.
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Frequently Asked Questions
The GST rate for most medicines, including OTC, generic, and branded, is 12%. However, essential medicines like insulin and oral rehydration salts are exempt from GST. It's also important to note that nutraceuticals, supplements, and vitamins attract a GST rate of 12% or 18%.
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Get Started with
Get Started with Ferbz
If you're interested in learning more about Ferbz and how it can help your pharmacy, you can sign up for a trial on our website: https://dashboard.ferbz.com/. Our support team is also available to answer any questions you may have: support@ferbz.com. With Ferbz, you can streamline your operations, reduce waste, and increase revenue. Don't let refill reminders and GST invoicing eat into your profits – try Ferbz today!
Built for independent pharmaciesStop doing billing manually.
Stop doing billing manually.
Let Ferbz handle it.
WhatsApp refill reminders, bulk GST invoicing, expiry tracking, and purchase order management — all in one app designed for Indian pharmacy owners.
No credit card required · Works on mobile · Supports multiple branches