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The Gazette of India published the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 on 10th March 2026. It came into force on the date of publication itself. The gazette has now been followed by an implementation order dated 13th March 2026 setting revised turnover thresholds effective 01.04.2026.

The news spread fast. So did the misreading. This article is based entirely on the official gazette text and addresses four issues that food business operators need to understand correctly.

1.  No More Renewals — But Annual Fee Still Applies

The gazette substitutes Regulation 2.1.7 entirely. The new regulation states:

“2.1.7(1) A license and registration certificate granted under these regulations shall be valid and subsisting, unless otherwise suspended, cancelled or surrendered.”

In plain language: once issued, your FSSAI license or registration continues indefinitely. There is no expiry date. There is no renewal cycle. The old system of 1 to 5 year validity periods is abolished.

Important nuance — Annual fee is NOT abolished

Regulation 2.1.7(2) states that if an FBO fails to pay the annual license fee or registration fee as specified by the Food Authority, the license shall be deemed suspended. During suspension, the FBO cannot carry out any food business activity. Renewal is gone. Annual fee is not.

Additionally, Regulation 2.1.7(3) requires that if a food business closes, the operator must inform the licensing authority in writing within 30 days and surrender the license or registration. No fee refund is admissible on surrender.

2.  If Your License Expires Before 31st March — Renew It Now

The gazette came into force on 10.03.2026. The implementation order for revised turnover thresholds is effective 01.04.2026. No transitional relief has been announced for licenses expiring in the gap period.

Action Required: If your FSSAI license or registration expires on or before 31st March 2026, renew it now under the current rules. A lapsed license is a violation. Do not assume the new framework provides a grace period — it does not say so.

3. The ₹1.5 Crore Threshold Is a Category Criterion — Not an Exemption from FSSAI

The gazette enables FSSAI to specify turnover thresholds and classification criteria for registration and licensing from time to time (Regulation 2.1.1(8)). Acting on this power, the implementation order dated 13.03.2026 sets the following thresholds effective 01.04.2026:

Type Threshold Limits (w.e.f. 01.04.2026)
Registration Turnover up to ₹1.5 crore
State License Turnover above ₹1.5 crore and up to ₹50 crore
Central License Turnover above ₹50 crore

Source: FSSAI Order No. I/36087/2026 dated 13.03.2026, signed by Sweety Behera, Director (Regulatory Compliance)

Critical point: This is a categorisation criterion, not an exemption. Every food business operator — regardless of turnover — must hold a valid FSSAI registration or license under the FSS Act, 2006. ₹1.5 crore determines which type applies, not whether it applies.

Turnover is also not the only criterion. Certain categories attract State or Central license regardless of turnover:

  • Importers, exporters, e-commerce food businesses, multi-state manufacturers — Central License regardless of turnover
  • Dairy units, slaughterhouses, certain processors — State License regardless of turnover

Verify your category at foscos.fssai.gov.in before assuming basic registration is sufficient.

4. One License Does Not Cover Multiple Locations

The gazette does not change the per-premises rule. An FSSAI license or registration is issued for a specific premises — not for a person, not for a business entity, and not for a city.

  • Two outlets in the same city require two separate licenses.
  • A factory in Mumbai and a warehouse in Pune require two separate licenses.
  • An importer who also retails from the same address may require separate registrations for each activity.

Perpetual validity does not extend a license to new premises. It only means the license at the registered premises does not expire.

5. Street Vendors: Deemed Registration Under FSSAI

The gazette inserts Regulation 2.1.1(7) which provides:

“Street food vendors, hawkers, food trucks, carts and any such other food businesses registered under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 shall be deemed registered under the Food Safety and Standards Act, 2006.”

Vendors registered with municipal corporations or town vending committees do not need a separate FSSAI registration. However, the gazette is clear that even these deemed-registered vendors must comply with the hygiene and sanitary requirements specified in Schedule 4 of the regulations.

6. Risk-Based Inspections: What the Gazette Actually Says

The gazette inserts a new Regulation 2.1.17 on Inspection and Audit. The key provision:

“Frequency and nature of inspections shall be determined through a dynamic risk-based mechanism, type of food business, past compliance history, third-party audit results and risk category of food handled.” — Regulation 2.1.17(2)

Four factors determine when and how often an inspector visits:

1. Risk category of the food commodity handled

2. Past compliance history of the food business operator

3. Third-party audit results

4. Type of food business

Additionally, Regulation 2.1.17(5) empowers the Commissioner of Food Safety to direct an FBO to get a food safety audit done by a third-party agency recognised by FSSAI, at the FBO’s own cost. This is a new and significant power.

Summary of Key Changes

  • Perpetual validity in force from 10.03.2026. No renewal cycle. License valid until suspended, cancelled or surrendered. [Regulation 2.1.7(1)]
  • Annual fee still applicable. Non-payment = deemed suspension. [Regulation 2.1.7(2)]
  • License expiring before 31st March? Renew now. No transitional relief announced.
  • Revised turnover thresholds effective 01.04.2026 per implementation order dated 13.03.2026.
  • ₹1.5 crore = registration category threshold, not an FSSAI exemption.
  • Street vendors registered under Street Vendors Act 2014 = deemed registered under FSS Act. [Regulation 2.1.1(7)]
  • Every premises needs its own license. Perpetual validity does not extend coverage to new locations.
  • Inspections now risk-based — frequency determined by commodity risk, compliance history, audit results. [Regulation 2.1.17(2)]
  • FBOs can be directed to undergo third-party audits at their own cost. [Regulation 2.1.17(5)]

Official Reference Documents

1. Notification No. RCD-01002/1/2021-Regulatory-FSSAI-Part(1) dated 10.03.2026 | FSS (Licensing & Registration of Food Businesses) Amendment Regulations, 2026 | Signed: Rajit Punhani, CEO, FSSAI

2. FSSAI Order No. I/36087/2026 dated 13.03.2026 — Implementation of Revised Turnover Threshold (effective 01.04.2026) | Signed: Sweety Behera, Director (Regulatory Compliance), FSSAI.

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About the Author: CA Sumit Nigam is a founding partner and Chief Member – Food Business Advisory at Snigdha & Associates, a firm of Chartered Accountants providing advisory and compliance services in company law, taxation, audit, and business structuringEmail: hi@snigdha360.com

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I am a Chartered Accountant with 10+ years of practice experience, advising Indian startups, SMEs, and growing companies on compliance, structuring, and tax strategy. Over the years, I’ve seen that founders don’t struggle because compliance is complex — they struggle because it is fragmente View Full Profile

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