FSSAI’s 2026 Licensing Overhaul: New Turnover Thresholds and Perpetual Licenses Explained
₹12 lakh to ₹1.5 crore. That's not a typo, and it's the single number that just changed which FSSAI category a huge share of India's food businesses now fall into. FSSAI notified a major overhaul to its licensing and registration regulations in March 2026, and a separate order revised the turnover thresholds effective April 1, 2026. Together, these changes are the biggest shift to FSSAI licensing since the system moved online.
What Actually Changed
Three tiers still exist, Registration, State License, and Central License, but the lines between them moved significantly. Basic Registration now covers turnover up to ₹1.5 crore, replacing the old ₹12 lakh limit. State License applies between ₹1.5 crore and ₹50 crore. Central License kicks in above ₹50 crore. For a huge number of small and mid-sized food businesses that were previously required to hold a State License simply because they crossed ₹12 lakh in turnover, this means they may now only need Basic Registration, a considerably lighter compliance tier.
Licenses No Longer Expire
Any license or registration issued on or after April 1, 2026 now has perpetual validity. There's no renewal cycle to track anymore, the license stays active until it's suspended or cancelled. The trade-off is that if the annual fee or required return isn't filed on time, the license gets automatically suspended, so the compliance burden has shifted from "remember to renew" to "don't miss your annual filing."
Which Businesses Still Need A Central License?
Turnover isn't the only factor. A specific list of business categories must hold a Central License regardless of how small their turnover is: importers, e-commerce food platforms, nutraceutical and health supplement manufacturers, proprietary food makers, exporter-manufacturers, trader and merchant exporters, 100% export-oriented units, radiation processing facilities, and 5-star-and-above hotels, among others. A small nutraceutical brand with modest revenue can't simply default to Basic Registration just because its turnover qualifies.
Inspections Are Becoming Risk-Based
Rather than a fixed inspection calendar, FSSAI has moved toward a risk-based inspection framework, where inspection frequency depends on the nature of the business and its compliance history rather than a blanket schedule applied to everyone equally.
What Existing Food Businesses Need To Check
If your business was already operating under a State License because of the old ₹12 lakh threshold, it's worth checking whether your current turnover now qualifies you for Basic Registration instead. Migration to the new threshold category is being handled as free and automatic through FoSCoS, and it doesn't change your existing license number. Worth confirming directly on the FoSCoS portal rather than assuming, since the categories you fall under depend on both turnover and the specific nature of your business.
