At present, as per Schedule 3 of FSS (Licensing and Registration of Food Businesses) Regulation, 2011, while applying for FSSAI License (State or Central), the Food Business Operator (FBO) has to pay a consolidated fee with the FSSAI license application (ranging from ₹2,000 to ₹7,500).
Thereafter, the application is processed by the concerned Licensing Authority. At times, the applicant may be found ineligible on one or more grounds and the application is rejected by the Licensing Authority or may get auto-rejected by the system, if for any reason; the query is not responded to by the FBO within the stipulated time of 30 days. Once rejected there is no provision for the refund of the License Fee.
However, the FSSAI has decided to reduce the initial application fee to ₹1,000/- plus GST. After the application is scrutinized by the concerned Licensing Authority and found to be in order in all respect, the differential amount of the License Fee i.e., total applicable license fee minus ₹1,000 (already paid as initial application fee) along with the GST on the differential amount shall be collected from the FBO prior to grant of FSSAI License.
The differential amount shall be paid within 30 days of approval, non-payment shall result into auto-rejection.
For eg.: Central license application is submitted with initial license fees of ₹1,180 (including 18% GST). Once the application is accepted by the concerned authority, the remaining amount shall become due for payment and after the payment is made, the license shall be generated automatically, without further processing.
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File No — RCD-01003/2/2022-Regulatory-FSSAI
Food Safety and Standards Authority of India
(A Statutory Authority established under the Food Safety and Standards Act, 2006)
(Regulatory Compliance Division)
FDA Bhawan, Kotla Road, New Delhi -110002
Dated 10th February, 2023
ORDER
Sub: Ease of Doing Business: Reduction of the initial application fee for FSSAI License to Rs. 1000 + GST [as applicable].
At present, as per Schedule 3 of FSS (Licensing and Registration of Food Businesses) Regulation, 2011, while applying for FSSAI License (State or Central), the Food Business Operator (FBO) has to pay a consolidated fee with the FSSAI license application. Thereafter, the application is processed by the concerned Licensing Authority. At times, the applicant may be found ineligible on one or more grounds and his application is rejected by the Licensing Authority or may get auto-rejected by the system, if for any reason; the query is not responded to by the FBO within the stipulated time of 30-days. Once rejected there is no provision for the refund of the License Fee as per Schedule 3 of FSS (Licensing and Registration of Food Businesses) Regulation, 2011, which results in the number of grievances, raised by food businesses due to loss of application fee [ranging from Rs. 2000/- to Rs. 7500/] for FSSAI license.
2. In order to promote new businesses/ Start-ups and provide ease in obtaining FSSAI License, Food Authority has decided to reduce the initial application fee for FSSAI license to Rs. 1000/- plus GST [as applicable]. After the application is scrutinised by the concerned Licensing Authority and found to be in order in all respect, the differential amount of the License Fee i.e. total applicable license fee minus Rs. 1000 [already paid as initial application fee] along with the GST [as applicable] on the differential amount shall be collected from the FBO prior grant of FSSAI License. (Illustrated Example at Annexure-1)
3. Issuance of the license will be subjected to the submission of differential amount (as mentioned in Para 2) by the FBO within the time limit of 30 days. Non-submission of the differential amount will result in the auto-rejection of the application.
4. It is pertinent to mention that the total license fee that shall be submitted by the FBO is exactly same as mentioned under Schedule 3 of FSS (Licensing and Registration of Food Businesses) Regulations, 2011. Only the application fee is bifurcated into Rs. 1000 and the differential amount [as mentioned in para 2 above]. The order is applicable only for the applications applied for New License.
5. The order shall be applicable for the applications for New Licenses submitted on or after 10/02/2023.
(Inoshi Sharma)
Executive Director (CS)
Email: ed-office@fssai.gov.in
To
1. All Food Business Operators, Associations, Food Safety Mitra, and other stakeholders.
2. Commissioners of Food Safety of all States/UTs and Directors of all Regional Offices, FSSAI
3. CTO, FSSAI, with a request for uploading on the FSSAI website
Copy for information to:
1. All Divisional Heads of FSSAI
2. PPS to Chairperson, FSSAI
3. PS to CEO, FSSAI
Annexure-1
Illustrated Example
Step 1: Applicant decides the eligibility based on the selection of Kind of Businesses and production capacity/turnover. If, the applicant eligible for Central License [i.e. Applicable license fee: Rs. 7500 for 1 year], would be required to pay only Rs. 1000/- plus GST [as applicable] at the time of submission of application.
Step 2: Licensing Authority processes the application as per the existing flow.
Step 3: After final scrutiny of application and conducting inspection [if required] → the Licensing Authority, will set the status as ‘Application is eligible for grant of License subject to payment of remaining fee’.
Step 4: Applicant has to pay the remaining [differential] license fee within 30 days and license will be generated automatically without further processing. In the instant example, applicant would be required to pay Rs. 7500 – Rs. 1000/- plus GST [as applicable] = Rs. 6500/- plus GST [as applicable] and get his license issued without any intervention of Licensing Authority.
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