MAAR Says, R&D Services Related To Cancer Diagnosis Do Not Count As ‘Healthcare Services’ Under GST Rules

The Maharashtra Authority for Advance Ruling (MAAR) has decided that blood tests used specifically to help detect cancer in the early stage are not considered part of standard “healthcare services.”

This matters because services that fall under “healthcare” are usually exempt from GST (Goods and Services Tax). Since these particular diagnostic services don’t qualify, they will be taxed.

Epigeneres Biotech Private Limited asked the Maharashtra Authority for Advance Ruling (MAAR) to decide if the diagnostic services they provide could be free from GST. MAAR has ruled that the services will not be eligible for the GST exemption. The quail’s judicial body has noted that diagnostic tests are still in the process of progress and have not yet been examined by the medical regulatory bodies. It is being observed that the individual has not produced any sort of license or certificate from the Central Drugs Standard Control Organisation, and also has not taken any approval from the Indian Council for Medical Research.

MAAR said, “The primary activity is research and experimental development of Cancer Prognostic and Diagnostic Technologies.” Further said, “Tests cannot be treated as a proper diagnostic test but are more in the nature of clinical research and development, and as a result, it does not qualify as a Health Care Service.”

A tax expert explained that this ruling shows an important difference between officially approved medical tests and new, technology-based testing methods. It makes it clear that not all lab tests are GST-exempt. If a test is still being developed and has not been approved by authorities such as ICMR or CDSCO, it will be considered research, not regular healthcare, and will be taxed under GST.

This is an important message for new diagnostic companies and labs using advanced tools like genome testing or AI-based methods. The expert said that if they want their services to be free from GST as part of healthcare, they must get the right medical licenses and approvals from the government health authorities.