ITR Filing Deadline Missed?
Last Chance to Claim your Tax Refund

  • TrustedTrusted by 1 Million+ Users
  • User Rating4.9 Star User Rating
  • Secure2500 Cr. Taxes Saved Already
ITR Filing Deadline Missed?

FSSAI State License vs Central License

Updated on: 27 May, 2024 11:41 AM

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.

Although both licenses aim to uphold food safety, they diverge in their application and extent. The state FSSAI license is tailored for modest-scale food ventures confined to a particular state, typically with turnovers under 20 crore rupees. These licenses, dispensed by the respective state authorities, emphasize aspects like hygiene, production protocols, and accurate labeling within their jurisdictional limits.

Conversely, the central FSSAI license caters to larger food establishments with nationwide operations, including prominent brands, large-scale production facilities, and entities engaged in food exports. Administered directly by the FSSAI, these licenses necessitate strict compliance with a line-up of regulations, including rigorous product evaluations, risk assessments, and robust quality assurance mechanisms.

Despite their differences, both license categories are pivotal in protecting the Indian citizens and upholding the sanctity of the country's food chain. Familiarity with these licensing avenues enables food enterprises to adeptly navigate the regulatory landscape, fostering an environment where food safety and quality are paramount.

FSSAI State License

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.


FSSAI Central License

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.

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.


Difference: FSSAI State License and FSSAI Central License

Administration

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.

Business Turnover

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.

Application Process

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.

Validity Period

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.

Compliance and Penalty

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.


Frequently Asked Questions

Q- What happens if my business crosses the turnover threshold for my current license (state or central)?

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.


Q- What are the consequences of operating without an FSSAI license?

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.


Q- Can I hold both a state and central FSSAI license?

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.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.