FSSAI 2026 Reforms: Perpetual Licence and New Turnover Limits

FSSAI changed the licensing framework for food businesses from 1 April 2026. Licences and registrations now continue without periodic renewal, turnover thresholds have moved sharply upward, and online food businesses on ONDC have clearer duties. This update explains what changed, what did not change, and where a food business should act first.

FSSAI 2026 Snapshot

The main legal change is the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, notified by FSSAI on 10 March 2026. A separate FSSAI Order dated 13 March 2026 implemented the revised turnover thresholds from 1 April 2026. FSSAI’s FAQs dated 27 March 2026 clarify perpetual validity, backend migration, fee adjustment, Tatkal approvals and street-vendor treatment.

Six changes matter most for founders and finance teams. Licences and registrations now have perpetual validity; existing FBOs are migrated to FoSCoS without fresh approval, and the same licence or registration number continues after category migration. The basic registration limit has moved from ₹12 lakh to ₹1.5 crore; the State Licence band now runs from above ₹1.5 crore to ₹50 crore; and a Central Licence generally applies above ₹50 crore unless the Kind of Business matrix requires it earlier.

Section 31 of the Food Safety and Standards Act, 2006 still governs the starting point: a food business cannot operate without the correct licence or registration. The 2026 reforms reduce renewal work and category friction; they do not remove hygiene, testing, display, return filing, inspection, or closure duties. For a category-level check, use Setindiabiz’s FSSAI applicability guide before treating turnover as the only test.

Perpetual Validity

Perpetual validity means an FSSAI licence or registration remains valid unless it is suspended, cancelled or surrendered. FSSAI’s 27 March 2026 FAQs state that Food Business Operators are no longer required to renew licences or registrations, while statutory hygiene and safety obligations continue. This is the biggest operational relief for small food businesses that previously tracked one- to five-year renewal cycles.

The change also applies to Tatkal licences and registrations. If an application was already under scrutiny or inspection before 1 April 2026 and was granted after that date, FSSAI’s FAQ confirms that the approval will still be issued with perpetual validity. A food business must still modify the licence when material particulars change, such as the address, product category, installed capacity, or constitution. 

New Turnover Limits

The turnover thresholds changed from 1 April 2026. Basic Registration applies up to ₹1.5 crore; State Licence applies above ₹1.5 crore and up to ₹50 crore; and Central Licence generally applies above ₹50 crore. The FoSCoS Kind of Business eligibility matrix, updated on 1 April 2026, also confirms annual fee references, such as ₹100 for registration, ₹5,000 for many State Licence categories, and ₹7,500 for many Central Licence categories.

Turnover is not the only test. The FoSCoS matrix requires a Central Licence for some categories irrespective of turnover, including importers, e-commerce operators, trader or merchant exporters, 100% Export Oriented Units, five-star and above hotels, and certain specialised manufacturing or processing activities. Dairy, meat, fish, packaged drinking water, and infant food businesses may benefit from the higher registration threshold where the matrix allows it. Still, FSSAI FAQ Q15 confirms that their hygiene, safety, and testing duties continue.

Migration and Fees

Existing Food Business Operators do not need to reapply only because the turnover slabs changed. FSSAI’s 27 March 2026 FAQs state that migration to the revised category will be processed automatically in the FoSCoS backend, based on FBO self-declarations, without scrutiny or approval from the Licensing or Registering Authority. No modification fee is payable for migration caused by the revised thresholds.

The same FAQs also confirm two practical protections. First, the FSSAI licence or registration number does not change merely because the category changes from Central to State, from State to Registration, or due to any similar threshold-led migration. Second, if an FBO already paid a higher-category fee, that fee is adjusted against the annual fee of the revised category. The business should still verify its self-declared turnover and Kind of Business on FoSCoS because an incorrect classification can create inspection and enforcement risks.

Premises and Linking

FSSAI approval remains premises-specific. A business with one food premise does not need a Central Licence merely because it sells across State borders; the trigger is the physical location, turnover and Kind of Business, not the delivery destination. Where a business operates food business premises in more than one State, head-office-level Central Licence rules and separate unit-level approvals must be checked against the FoSCoS matrix.

Multi-location businesses should also use the Head Office Licence Linking facility on FoSCoS where applicable. It allows branch licences to be linked to the head office credentials so that the business can view linked premises, issue dates, addresses, and validity status in one place. For businesses still setting up their first approval, Setindiabiz’s FSSAI registration page and FoSCoS registration guide cover the filing path before branch linking becomes relevant.

Lower Compliance Load

The 2026 amendment introduces computer-assisted, risk-based inspections. The inspection frequency is driven by the type of food handled, compliance history, surveillance and food-testing results, self-compliance filings and third-party audit outcomes. In plain terms, compliant, lower-risk FBOs should face fewer routine inspections, while higher-risk or non-compliant premises receive closer regulatory scrutiny.

Street food vendors also get direct paperwork relief. FSSAI’s FAQ states that street vendors, hawkers, food carts, food trucks, and similar food businesses already registered under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, are deemed registered under the food safety framework. That removes dual registration and dual fees, but Schedule 4 hygiene and sanitary requirements under the 2011 Licensing Regulations still apply.

ONDC Food Sales

FSSAI’s Order dated 18 March 2026 addresses food sales through the ONDC model, in which a single food transaction may involve multiple Seller Apps, Buyer Apps, and fulfilment entities. The order runs counter to the existing e-commerce FBO framework. It assigns specific compliance obligations, ensuring that licence display, food information, shelf-life information, invoice access, and grievance handling are not lost across platforms.

Under the ONDC framework, the Seller App is primarily responsible for providing accurate product, licence, hygiene rating, labelling, and shelf-life information. At the same time, the Buyer App displays the information it receives and enables the consumer-facing transaction flow.

Mandatory food information must be available to the consumer before purchase at no extra charge, and e-commerce FBOs must ensure that expired or non-compliant products are not listed. Sellers should also check whether their own activity separately requires registration, a State Licence, or a Central Licence under the FoSCoS matrix.

What to Check Now

Every FBO should conduct a brief 2026 status review rather than assuming that perpetual validity means “no further action”. Start by checking the current approval number, business address, Kind of Business, self-declared turnover and linked premises on FoSCoS. If your category has shifted, confirm that the migration and fee adjustment are reflected correctly. If your label, invoice, packaging or website carries the FSSAI number, verify that the number remains active.

The next check is operational. Manufacturers and importers must continue to file returns where applicable; high-risk food categories must keep hygiene and testing records current; and businesses that have closed must surrender or close the approval correctly, rather than leaving an expired or unused licence unattended. Section 63 of the Food Safety and Standards Act, 2006 punishes carrying on a food business without the required licence with imprisonment for up to 6 months and a fine of up to ₹5 lakhs.

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Editorial Team

Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.