🚫 GST Exemption Denied for Cancer Diagnostic R&D Services: Maharashtra AAR Clarifies

By Author | April 23, 2025 | GST News India

The Maharashtra Authority for Advance Ruling (MAAR) has ruled that cancer diagnostic R&D services do not qualify as healthcare services. Therefore, they are not eligible for GST exemption.

This decision followed an application from Epigeneres Biotech Private Ltd, which sought clarification on whether its blood test-based cancer diagnostics fall under exempt healthcare services.

MAAR held that the company focuses on research and experimental development, not established medical diagnosis. Since the tests are still under development and lack regulatory approval, they do not meet the criteria for GST exemption.

The authority noted the company failed to present licenses or certifications from bodies like the Central Drugs Standard Control Organisation (CDSCO) or the Indian Council of Medical Research (ICMR). As a result, these services are treated as clinical research, which is taxable under GST law.

Key Takeaway for Medical R&D Startups

Tax experts stress that startups using advanced technologies like AI diagnostics, genome sequencing, or biotech-based testing must obtain proper approvals. Without validation from recognized authorities, such services will be taxed as research services, not exempt healthcare services.

To qualify for exemption, services must be clinically validated, approved, and recognized by official medical regulators.