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Within India's rich and varied food industry, the Food Safety and Standards Authority of India (FSSAI) serves as the sentinel for food quality and safety. It accomplishes its mandate through a licensing framework that mandates adherence to rigorous standards for food enterprises. However, to effectively engage with this framework, one must distinguish between two intertwined avenues: the state FSSAI license and the central FSSAI license. This article will help you understand the difference between State FSSAI license and Central FSSAI license.
FSSAI registration is mandatory for petty food manufacturers or Food Business Operators (FBOs) with an annual turnover of less than ₹12 lakh unless they fall under compulsory licensing. This applies to individuals or small-scale businesses involved in manufacturing, selling, or distributing food, including hawkers, petty retailers, itinerant vendors, temporary stall-holders, and small food industries, provided they meet the following criteria:
The state FSSAI license is given by the food safety department of the relevant state government and is obligatory for all food businesses operating within the state’s jurisdiction, especially those with an annual turnover not exceeding ₹20 Crores.
Issued pursuant to the Food Safety and Standards (Licensing and Registration of Food Business) Regulations, 2011, acquiring the state FSSAI license necessitates the submission of an application to the state's food safety department, accompanied by the requisite documentation and fees.
Validity for the state FSSAI license extends for five years from its issuance date, with the stipulation that renewal procedures commence 30 days before its expiry.
This license serves to various food-related entities, including food manufacturers, processors, packers and repackers, dairy and dairy product facilities, food importers, and exporters.
The central FSSAI license is conferred by the Food Safety and Standards Authority of India, an authoritative entity under the Ministry of Health and Family Welfare, Government of India. It is compulsory for food enterprises with an annual turnover exceeding Rs. 20 crore or those operating across multiple states or possessing multiple establishments within one state to obtain a Central FSSAI license.
Issued under the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, the acquisition of the central FSSAI license mandates the submission of an application to the FSSAI, accompanied by the requisite documentation and fees.
The central FSSAI license holds a validity period of five years from its date of issuance, with renewal procedures requiring commencement 30 days prior to its lapse.
This license caters to a range of food-related sectors, including food manufacturers, processors, packers and repackers, dairy and dairy product facilities, food importers, and exporters.
The primary distinction between the state and central FSSAI licenses pertains to jurisdiction. The state FSSAI license is applicable solely within the confines of the issuing state, adhering strictly to state-level regulations. Conversely, the central FSSAI license holds nationwide validity, encompassing both state and central regulatory frameworks. It is imperative for enterprises spanning multiple states or possessing multiple units within a single state to obtain the central FSSAI license.
Another significant differentiation lies in the requisite business turnover. The state FSSAI license is obligatory for enterprises with an annual turnover not exceeding Rs. 20 crore. In contrast, the central FSSAI license is mandated for businesses reporting an annual turnover surpassing Rs. 20 crore.
The application procedures for both licenses exhibit substantial similarity. However, the central FSSAI license application may entail added intricacies, necessitating approvals from central governmental bodies such as the Ministry of Health and Family Welfare, the Ministry of Environment and Forests, and the Ministry of Commerce and Industry.
Both the state and central FSSAI licenses possess an identical validity duration, specifically five years from the date of issuance. Renewal procedures should be initiated 30 days prior to the license's expiry.
While both licenses are geared towards upholding food safety standards, divergent regulatory mechanisms govern non-compliance. The state FSSAI license falls under the purview of the respective state government, with penalties determined accordingly and remitted to the state treasury. In contrast, the FSSAI oversees the central license, with federal penalties levied for breaches. Such penalties are directed towards the central government's designated bank accounts.
Here’s a table for reference -
| Particulars | FSSAI Registration | FSSAI License |
|---|---|---|
| Turnover Limit | Businesses with an annual turnover of more than Rs.12 lakhs. | Businesses with an annual turnover exceeding Rs.12 lakh. |
| Types | Basic Registration. | FSSAI Central License and FSSAI State License. |
| Size of Business | Petty food business operators. | Medium and large-sized food business operators and food businesses. |
| Duration | Duration depends on the applicability of the registration. | Issued for a minimum of 1 year and maximum of 3 years. |
| Application | Form A | Form B |
| Fees for Registration/License | Fixed at Rs.100 per year. | Fees can vary from Rs.2,000 to Rs.7,500 per year, depending on the type of license. |
| Publication | The FSSAI registration has to be displayed on the office premises, and the registration number is supposed to be displayed on the product package. | The exporter, importer, trader, and producer must mandatorily publish the FSSAI license number on the [packing of all the products. |
Hope this article helped you understand the difference between the FSSAI State license and the Central license. If you have any tax-related doubts or need assistance with tax filing, you can connect with our tax experts. Simply call us at 91166 84439 or email us at [email protected].
If your business's annual turnover surpasses the threshold for your current license, you'll need to upgrade to the appropriate license within a specified timeframe. Typically, you'll have a few months to obtain the new license before facing potential penalties for non-compliance.
Operating a food business without a valid FSSAI license is illegal and can attract significant penalties. These penalties may include fines, product seizure, and even business closure.
No, it's not necessary to hold both licenses simultaneously. Depending on your business operations and turnover, you'll require either the state license or the central license. However, if your business expands to encompass multiple states or exceeds the central license turnover threshold, you'll automatically need to transition from the state license to the central one.
FSSAI establishes food safety standards and guidelines under the Food Safety and Standards Act, 2006. Food Business Operators (FBOs) must obtain an FSSAI Central License if their turnover exceeds ₹20 crore or if they are engaged in importing or exporting food products in India.
Individuals involved in manufacturing or conducting food business activities from home for registered entities like Cooperative Societies, Mahila Udyog, Self-Help Groups, Gruh Udyog, or similar government-registered societies are required to comply with applicable food safety regulations.
