Tax Consultant
1312 Points
Posted on 15 June 2026
Diagnostic lab tests are one of the most frequently asked GST healthcare exemption questions. Here is the definitive answer:
EXEMPT LAB SERVICES (No GST):
- Blood tests, urine analysis, culture tests
- Radiology: X-ray, MRI, CT scan, ultrasound
- ECG, echocardiography
- Pathology: biopsy, histopathology
- COVID-19 RT-PCR tests
Why exempt: These qualify as healthcare services under Notification 12/2017-CTR Entry 74 , services by a clinical establishment (authorized medical practitioner / clinical establishment).
KEY CONDITION: The lab must qualify as a CLINICAL ESTABLISHMENT. This means:
- A hospital, dispensary, clinic, or other institution by whatever name called
- Provides diagnostic services under supervision of authorized medical practitioner
Private standalone labs (Dr Lal PathLabs, SRL, Metropolis structure labs) DO qualify as clinical establishments and their tests are EXEMPT.
TAXABLE LAB SERVICES (18% GST):
- Forensic testing
- Food testing / product quality testing
- Environmental testing
- Research lab services to pharma companies
- Non-clinical testing services
The distinction: clinical (patient-diagnosis) purpose = exempt; non-clinical/commercial testing = taxable.
If your lab issues invoices for both exempt (diagnostic) and taxable (commercial testing) services, you are a mixed supplier and must register under GST and maintain separate records for ITC purposes.
For more on GST treatment of healthcare and medical services in 2026: [Tax Garden GST on Healthcare Guide](https://taxgarden.in/blog/gst-on-healthcare-medical-services-india-2026)