28th June, 2024 marks a significant milestone for food businesses in India, as the Food Safety and Standards Authority of India (FSSAI) introduced the first phase of the Instant/Tatkal License/Registration on the Food Safety Compliance System (FoSCoS) portal. This new scheme aims to streamline the licensing process, offering instant grant of licenses/registrations to selected low-risk food businesses through digital verification.
Who Can Benefit?
The instant issuance scheme is tailored for low-risk categories of food businesses, enabling them to obtain licenses/registrations swiftly. The eligible businesses include:
– Wholesalers
– Distributors
– Retailers
– Transporters (excluding those dealing with dairy, meat, and fish products)
– Storage without Atmospheric Controlled + Cold
– Importers
– Food Vending Agencies
– Direct Sellers
– Merchant-Exporters
– Petty Retailers of snacks/tea shops
– Hawkers (Itinerant/Mobile food vendors)
However, it’s important to note that businesses involved in milk, meat, and fish categories are excluded from this instant issuance scheme.
Exclusions for Meat and Fish Products
Food businesses dealing with meat and fish products, such as retailers, wholesalers, distributors, storage, direct sellers, and food vending agencies, are not eligible for instant license/registration. Similarly, transporters handling dairy, meat, and fish products are also excluded from the instant issuance scheme.
Fees Payment Requirements
To apply for an instant license/registration, applicants must pay the entire fee upfront. The fee structure remains consistent with existing provisions:
– Registration: ₹100
– State License: ₹2000
– Central License: ₹7,500 (plus 18% GST)
Unlike the regular process, the full fee is payable at the time of application, ensuring the instant issuance of the license.
Eligible Food Businesses for Instant License
In this initial phase, only proprietor (single owner) type food businesses can apply for instant licenses. This streamlined approach simplifies the process for sole proprietors, making it easier for them to comply with food safety regulations.
Instant Issuance Process
The instant issuance process leverages digital verification, unlike the traditional process that involves scrutiny and verification by food authorities. The information verified includes PAN, GST, AADHAAR, CIN, etc.
Requirements for Instant License/Registration
To obtain an instant license/registration, applicants must submit the following documents for digital verification:
– For proprietorship firms applying for a license: Verification through GST and AADHAAR.
– For registration: Verification through PAN and AADHAAR for petty FBOs under wholesaler, distributor, retailer, transporter, storage without atmospheric controlled + cold, food vending agencies, and direct seller. Verification through AADHAAR for petty retailers of snacks/tea shops and hawkers.
– Applicants must upload entrance/front-facing photographs of the premises, clearly showing the address and an image of the Food Business Operator (FBO) in front of the premises.
Validity Period
The licenses/registrations issued under the instant issuance provision are valid for one year. Food businesses can renew their licenses/registrations for a period of 1-5 years as per existing provisions.
Who Should Not Apply?
Applicants falling under the following categories should not apply for the instant license/registration:
– Those who already possess a valid license/registration for the same premises.
– Those whose license/registration has been suspended by authorities.
– Those whose license/registration was canceled in the past three months.
– Those not falling under the listed categories for instant issuance.
Food businesses that obtain a license/registration under incorrect categories or ineligible criteria may face penalties under Section 61 of the FSS Act, 2006, with penalties up to ₹10 lakhs for false declarations.
Conclusion
The introduction of the Instant/Tatkal License/Registration by FSSAI marks a transformative step in simplifying the compliance process for low-risk food businesses. By leveraging digital verification, FSSAI ensures a more efficient and transparent system, promoting food safety and regulatory compliance across the nation.
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Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.
The author can also be reached at cstanveersaluja@gmail.com.
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