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Jay Sudha

FSSAI Registration vs State Licence vs Central Licence

The turnover bands changed dramatically from 1 April 2026 — registration now covers businesses up to ₹1.5 crore, not ₹12 lakh. Here is the current framework.

By Jay Sudha, Finance Educator··5 min read
FSSAI Registration vs State Licence vs Central Licence

Every business that manufactures, processes, packages, stores, distributes, or sells food in India — regardless of size — needs some form of FSSAI approval. The question is never "do I need it," but "which tier." FSSAI substantially reformed its turnover bands effective 1 April 2026, and this article explains the current framework, since a meaningful amount of content still in circulation reflects the older, much lower thresholds.

The three tiers, current as of the 2026 reform

Tier Annual turnover Notes
Registration Up to ₹1.5 crore Simplified, no pre-inspection, near-instant for most applicants
State Licence ₹1.5 crore to ₹50 crore Issued by the State Licensing Authority
Central Licence Above ₹50 crore Also required for importers, exporters, and certain multi-state or specified-category operators regardless of turnover

This is a substantial change from the pre-2026 framework, where the Registration ceiling was just ₹12 lakh — meaning a large number of small food businesses that previously required a full State Licence now qualify for the much simpler Registration tier. If you are relying on information published before March 2026, the turnover figures you are reading are very likely out of date.

What each tier actually involves

Registration is designed to be lightweight: basic applicant and business details, no mandatory pre-registration inspection for most categories, and fast turnaround. It suits home-based food businesses, small eateries, tiffin services, and small packaged-food resellers.

State Licence applies to mid-sized food businesses and involves a more detailed application, including plans for food safety management, and is issued by the state-level FSSAI licensing authority rather than a lighter registration process.

Central Licence applies to the largest food businesses by turnover, and separately to specific categories the regulation treats as needing central oversight regardless of size — importers and exporters of food, for instance, need a Central Licence even if their turnover would otherwise place them in the Registration or State tier, because cross-border food safety oversight is handled centrally.

Perpetual validity — the other major 2026 change

Alongside the turnover reform, FSSAI registrations and licences issued under the current framework carry perpetual validity — they do not expire and do not require periodic renewal filing, a significant change from the earlier system of fixed-term licences needing repeated renewal. This removes one recurring compliance task, but does not remove the underlying obligation to hold the correct tier for your current turnover, or your ongoing food-safety and labelling compliance responsibilities.

What to do if your turnover has changed

Because the tier is turnover-based and turnover changes year to year, this is not a one-time decision:

  • If your turnover grows past your current tier's ceiling, you need to upgrade — Registration to State Licence, or State to Central Licence — before continuing to operate at the higher volume, not after.
  • If you registered before April 2026 under the old, lower bands and your turnover has stayed under ₹1.5 crore, you may now be over-licensed relative to what is currently required — this is not usually something you are obligated to correct, but it is worth knowing your current classification accurately.
  • If you are an importer or exporter of food, you need a Central Licence regardless of turnover — this exception to the turnover-based tiering is easy to miss if you are focused only on the revenue bands.

Common mistakes

  • Relying on outdated turnover figures. The March 2026 reform is recent enough that a large amount of existing content — including some professional advisory material — still cites the old ₹12 lakh registration ceiling.
  • Assuming a very small food business is exempt entirely. There is no exemption by size, only a lighter tier — even a home baker selling occasionally needs at least basic Registration.
  • Not tracking turnover growth against the tier ceiling. Perpetual validity removes the renewal reminder that used to periodically prompt a review — without that trigger, tier upgrades are easier to miss.
  • Overlooking the Central Licence requirement for import/export activity. This applies regardless of turnover and is a distinct trigger from the standard revenue-based bands.

What to do next

  • Calculate your current annual food-business turnover and match it against the current bands: up to ₹1.5 crore (Registration), ₹1.5 crore-₹50 crore (State Licence), above ₹50 crore (Central Licence).
  • If you import or export food, confirm you hold a Central Licence regardless of your turnover figure.
  • If you registered before April 2026, check whether your current tier still matches your current turnover under the revised bands.
  • Apply or upgrade through foscos.fssai.gov.in, the official FoSCoS portal — avoid third-party sites claiming to expedite the process for a fee.
  • Even with perpetual validity removing renewal filing, keep food-safety and labelling compliance under regular review — the validity change does not touch these obligations.

Frequently Asked Questions

Sources and references

Rules, rates, and thresholds in India change over time. Always confirm the current position with the official source above before acting on it.