New Delhi, September 17, 2025: The Association of Diagnostic Manufacturers of India (ADMI) has welcomed the Government of India’s progressive move to rationalise Goods and Services Tax (GST) on diagnostic products—reducing the GST on reagents from 12% to 5% and on instruments from 18% to 5%. ADMI noted that this decision will significantly benefit patients, strengthen the healthcare ecosystem, and advance the vision of Make in India and Atmanirbhar Bharat.

However, ADMI has highlighted a pressing operational challenge resulting from this tax revision. The change, effective from 22nd September 2025, requires diagnostic companies to revise the Maximum Retail Price (MRP) of existing finished goods already manufactured and stored in warehouses.

Practical Challenge of Re-labelling:
Diagnostic kits and reagents are typically sealed and shrink-wrapped to maintain quality and integrity. Physical re-labelling of existing lots involves breaking sealed packs, removing old labels, printing and affixing new stickers, re-sealing, and re-distributing. This process is not only labour-intensive and costly but also risks compromising product quality and delaying supply to hospitals and laboratories.

For example, re-labelling a lot of 10,000 reagent bottles could take 15–20 workers over 7–10 days, costing ₹8–10 lakh per lot. Such delays could disrupt critical diagnostic services in hospitals, laboratories, and public health programmes.

Risks Identified by ADMI:
Disruption in supply of essential diagnostic products
Potential compromise of product integrity
Increased logistics burden and supply chain delays

ADMI’s Request to NPPA:
To ensure uninterrupted availability of essential diagnostics while maintaining compliance, ADMI has submitted the following requests to the National Pharmaceutical Pricing Authority (NPPA):

1. Exempt existing finished goods manufactured before 22nd September 2025 from mandatory physical re-labelling/re-stickering.
2. Permit alternative compliance by:

Issuing official circulars to dealers, hospitals, and laboratories
Updating revised MRPs on invoices and company websites
Sharing price lists on digital platforms
3. Allow a transition window until 31st December 2025 for smooth implementation.

ADMI assured NPPA that its members will pass on the full benefits of GST reduction to patients transparently while safeguarding product quality and ensuring uninterrupted supply.

“This relief will prevent disruption in diagnostics availability, reduce wastage of critical medical products, and protect the integrity of essential healthcare tools,” ADMI stated.