The diagnostic services to perform blood tests that helps the early detection of cancer fall from the periphery of the ‘health services’, has governed Maharashtra’s authority for advanced failure (alone). This means that this service will not be exempt from GST.
Epigeneres Biotech Private Ltd had moved, but looking for an anticipated decision on whether the provision of diagnostic services would qualify for the exemption of GST.
“Primary activity is the research and experimental development of prognosis and cancer diagnosis,” but said by dictating that it is not eligible for the benefit of exemption. The judicial body of Codornices observed that the diagnostic test is still in its development internship and is not yet validated by medical regulatory bodies. He realized that the applicant has not produced any license or certificate of the Standard Control Organization of Central Medicines or any approval of the Indian Council for Medical Research. He also said: “The tests cannot be treated as a clean diagnostic test, but they are more in the nature of clinical research and development and, as a result, does not qualify as a medical care service.”
According to Sandop Sehgal, a Global AKM partner, this ruling highlights a crucial distinction between approved medical care diagnoses and the new test methods promoted by technology. It clearly establishes that not all laboratory tests are automatically exempt from GST. If a test is still in the experimental stage and lacks approvals from regulatory bodies such as ICMR or CDSCO, it will be treated as an investigation and subject to GST.
This is a key conclusion for diagnostic start-up and laboratories that use advanced technologies such as genome sequencing or AI-based tests. Therefore, “qualifying for the exemption of GST under medical care services, the change of medical licenses and appropriate regulatory approvals is essential,” he said.
Posted on April 21, 2025