Diagnostic companies for conducting blood assessments which assists in early detection of most cancers fall out of the periphery of ‘Healthcare companies’, Maharashtra’s Authority for Advance Ruling (MAAR) has dominated. This implies such a service is not going to be exempted from GST.
Epigeneres Biotech Non-public Ltd had moved MAAR in search of advance ruling on whether or not the supply of diagnostic companies would qualify for exemption from GST.
“The first exercise is analysis and experimental improvement of Most cancers Prognostic and Diagnostic Applied sciences,” MAAR stated whereas ruling that it’s not eligible for the advantage of exemption. The quails judicial physique noticed that diagnostic check continues to be in its developmental stage and isn’t but validated by the medical regulatory our bodies. It seen that applicant has not produced any license or certificates from Central Medication Customary Management Organisation or any approval from Indian Council for Medical Analysis . It additionally stated: “Exams can’t be handled as a correct diagnostic check however is extra within the nature of scientific analysis and improvement and consequently it doesn’t qualify as a Well being Care Service.”
Based on Sandeep Sehgal, Associate at AKM World, the stated ruling highlights an important distinction between authorized healthcare diagnostics and new, tech-driven testing strategies. It clearly states that not all laboratory assessments are routinely exempt from GST. If a check continues to be within the experimental stage and lacks approvals from regulatory our bodies like ICMR or CDSCO, it is going to be handled as analysis and topic to GST.
This can be a key takeaway for diagnostic start-ups and labs utilizing superior applied sciences like genome sequencing or AI-based testing. Due to this fact, “to qualify for GST exemption underneath healthcare companies, acquiring correct medical licenses and regulatory approvals is crucial,” he stated.
Revealed on April 21, 2025
