{"id":4771,"date":"2025-07-09T17:53:09","date_gmt":"2025-07-09T12:23:09","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4771"},"modified":"2025-07-09T17:53:09","modified_gmt":"2025-07-09T12:23:09","slug":"unvalidated-cancer-tests-not-exempt-as-healthcare-services-aar","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/unvalidated-cancer-tests-not-exempt-as-healthcare-services-aar","title":{"rendered":"Unvalidated Cancer Tests Not Exempt as Healthcare Services | AAR"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000400698\/experimental-cancer-diagnostic-tests-not-validated-by-regulators-do-not-qualify-as-healthcare-services-aar\">Epigeneres Biotech Pvt. Ltd. (2025) 32 Centax 54 (A.A.R.-GST-Mah.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Shri D.P. Gojamgunde<\/strong> &amp; <strong>Ms Priya Jadhav<\/strong>, Members<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The applicant sought an advance ruling on whether its experimental cancer diagnostic tests, which use next-generation sequencing and algorithm-based technology, qualify as \u2018healthcare services\u2019 exempt from GST under Entry 74 of Notification No. 12\/2017-Central Tax (Rate). The company\u2019s tests, still in the developmental stage and not validated by Indian medical regulatory bodies, are designed to detect the presence or risk of cancer through blood-based RNA analysis. The applicant argued that their laboratory and diagnostic services should be classified as healthcare services by a clinical establishment and thus be GST-exempt.<\/p>\n<p>The applicant contended that their diagnostic services fall within the definition of \u2018healthcare services\u2019 and that their laboratory qualifies as a clinical establishment. They argued that their activities\u2014though innovative and research-driven\u2014assist in the diagnosis of disease and should be classified under SAC 999316, making them eligible for GST exemption.<\/p>\n<p>The jurisdictional officer, however, argued that the applicant\u2019s tests are not validated by regulatory authorities like CDSCO or ICMR, are still experimental, and are more akin to research and development activities. Therefore, the officer asserted, these services should be classified under SAC 998111 (research and experimental development in natural sciences), which does not qualify for GST exemption.<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p>The Authority for Advance Ruling (AAR), Maharashtra, held in favour of the revenue. It found that the applicant\u2019s cancer diagnostic tests are still in the developmental stage and have not been validated or approved by Indian medical regulatory bodies. As such, these tests do not meet the definition of \u2018healthcare services\u2019 under the relevant GST notification. The AAR concluded that the applicant\u2019s activities are in the nature of research and experimental development, appropriately classifiable under SAC 998111, and are not eligible for GST exemption under Notification No. 12\/2017-Central Tax (Rate). The application for exemption was thus rejected, and GST was held to be applicable on the services provided.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2020%20(36)%20G.S.T.L.%20417&amp;itemType=AP\">DKMS BMST Foundation India, In re<\/a> \u2014 2020 (36) G.S.T.L. 417 (A.A.R. &#8211; GST &#8211; Kar.) \u2014 Referred [Para 2.14]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(23)%20G.S.T.L.%20509&amp;itemType=AP\">J C Genetic India (P.) Ltd., In re<\/a> \u2014 2019 (23) G.S.T.L. 509 (A.A.R. &#8211; GST) \u2014 Referred [Para 2.14]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(24)%20G.S.T.L.%20788&amp;itemType=AP\">Medivision Scan and Diagnostic Research Centre (P) Ltd., In re<\/a> \u2014 2019 (24) G.S.T.L. 788 (A.A.R. &#8211; GST) \u2014 Referred [Para 2.14]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2018%20(13)%20G.S.T.L.%20224&amp;itemType=AP\">Sayre Therapuetics (P.) Ltd., In re<\/a> \u2014 2018 (13) G.S.T.L. 224 (A.A.R. &#8211; GST) \u2014 Referred [Para 2.14]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-Central%20Tax%20(Rate)&amp;itemType=AP\">Notification No. 12\/2017-Central Tax (Rate)<\/a>, dated 28.6.2017,<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Epigeneres Biotech Pvt. Ltd. (2025) 32 Centax 54 (A.A.R.-GST-Mah.) Judiciary&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-4771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Unvalidated Cancer Tests Not Exempt as Healthcare Services | AAR<\/title>\n<meta name=\"description\" content=\"AAR ruled experimental cancer diagnostic tests not approved by regulators don&#039;t qualify as healthcare services, thus attract GST under SAC 998111.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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