PTR and PTS Calculator with GST
Rate estimates for the partners and retailers in the pharmaceutical industry have grown challenging since the Government of India implemented GST. GST calculations have undergone many revisions, and it is now more difficult to determine a product's rate.
Do not fear; we have made it easier for our merchants and associates to determine the cost of any pharmaceutical product. Knowing the terms used for determining a product's rate is preferable before continuing.
To enlighten our team of associates & retailers, we explain the terms below:
Price to Retailer. It is the price to be given by the retailer to the stockist. GST is not included in PTR.
Price to the stockist. It is the price at which any pharma company will charge its products from stockists or distributors. GST is not included in PTS
Maximum Retail Price. It is the price to be given by customers at the time of buying any pharma product from a retail pharmacy store. It may be noted that the MRP rate is inclusive of GST. Now, let us proceed with the calculation of rates.
To arrive at the price for the retailer (PTR), we must consider the net margin (including GST) and the factor of GST.
Net Margin = MRP - Retail %
GST Factor = 100 + GST% / 100
PTR = Net margin / GST Factor
Calculation of PTS
PTS = PTR - Stockist %