Last reviewed: 24 September 2026. The Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, gazetted 10 March 2026 and effective 1 April 2026, more than doubled – in some bands, more than tripled – the turnover thresholds that decide whether a food business needs Basic Registration, a State Licence, or a Central Licence. If your turnover sits anywhere near the old cut-offs, this changes which category you fall into, and possibly means real savings on compliance cost.
Old vs new thresholds, side by side
| Category | Old turnover band | New turnover band (from 1 Apr 2026) |
|---|---|---|
| Basic Registration | Up to ₹12 lakh | Up to ₹1.5 crore |
| State Licence | ₹12 lakh – ₹20 crore | ₹1.5 crore – ₹50 crore |
| Central Licence | Above ₹20 crore | Above ₹50 crore |
The revision was driven by a NITI Aayog regulatory-reform recommendation aimed at cutting compliance burden on micro, small and medium food businesses. In practice, it moves a large number of street vendors, home-based food businesses, small eateries and neighbourhood manufacturers who previously needed the costlier, more document-heavy State Licence down into the simpler, cheaper Basic Registration category.
What this means in practice
Worked example. A home bakery with annual turnover of ₹40 lakh previously needed a State Licence (since it crossed the old ₹12 lakh Basic Registration ceiling). Under the revised thresholds, the same ₹40 lakh turnover business falls comfortably within Basic Registration – a simpler process with fewer document requirements and a smaller fee, without any change to the food safety standards the business must actually meet.
Second example. A regional snack manufacturer with ₹18 crore turnover, previously well inside State Licence territory, remains on a State Licence under the new bands (which now run to ₹50 crore) – no change in category, but worth confirming the licence itself reflects current turnover if it was issued years ago against a different declared figure.
Importantly, this is a reclassification of who needs what type of registration/licence – it does not relax the underlying food safety, hygiene or labelling standards a business must meet. A Basic Registration holder is still expected to meet applicable Schedule 4 hygiene requirements, and this revision should not be read as reduced food-safety scrutiny.
Do you need to do anything if you already hold a licence?
- If your turnover now falls into a lower category than your current licence type, you are not automatically downgraded – check with FSSAI/FoSCoS guidance on whether a voluntary category change is available and worth pursuing before your current licence's renewal date.
- If you are a new applicant, apply directly under the revised bands – do not assume the old thresholds from an earlier reference document or consultant's checklist.
- If your turnover has grown since your last FSSAI filing, check it against the new thresholds before assuming you still qualify for your existing category at renewal.
- If you operate across multiple outlets or a central kitchen plus outlets, confirm whether turnover is assessed on a consolidated or per-unit basis for your specific business structure – this affects which category applies well before any single outlet's individual turnover would suggest.
How this interacts with other FSSAI filings
The category you hold (Basic/State/Central) still determines which annual return applies and the compliance calendar that follows – our note on the FSSAI Annual Return Form D1 and on choosing between Registration, State or Central Licence both still apply, just against the revised turnover bands rather than the old ones. Re-check your category against these updated numbers before relying on either guide's worked examples, which predate this revision.
One practical side effect worth flagging: a business moving from a State Licence to Basic Registration should not assume its existing hygiene, labelling and Schedule 4 compliance documentation becomes unnecessary. Auditors and inspectors continue to check the same underlying standards regardless of registration category – only the paperwork for the registration/licence itself gets lighter.
Frequently asked questions
My turnover is Rs 45 lakh. Do I need Basic Registration or a State Licence now?
Under the revised thresholds effective 1 April 2026, Basic Registration covers turnover up to Rs 1.5 crore, so a Rs 45 lakh turnover business falls within Basic Registration, not a State Licence.
I already hold a State Licence but my turnover is under Rs 1.5 crore. Do I have to downgrade?
Not automatically. Existing licences remain valid for their term; check current FSSAI/FoSCoS guidance on whether and how to move to a lower category, and weigh it against your licence's remaining validity and any near-term turnover growth.
Does the higher threshold mean less food safety scrutiny for small businesses?
No. The revision changes which registration/licence category a turnover level falls into, not the underlying hygiene, safety and labelling standards a food business must meet under Schedule 4 and related requirements.
When exactly did these new thresholds take effect?
The Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 were gazetted on 10 March 2026, with an implementation order dated 13 March 2026, and the revised thresholds took effect from 1 April 2026.
Does this change apply to manufacturers as well as retailers and vendors?
Yes, the turnover-based categorisation applies across food business types – retail, manufacturing, catering and vending – based on annual turnover, not the specific nature of the food business.
Where can I check which category my exact turnover falls into?
Use the revised bands in this article as your starting reference, and confirm your specific category against the current FoSCoS portal guidance or with your compliance advisor before applying or renewing.
We handle FSSAI registration, licensing and category changes for food businesses across Maharashtra.
FSSAI Registration & Licence GST Registration Talk to usThis article summarises the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, effective 1 April 2026, as understood on the date of review. General information, not advice on your specific facts – confirm details against the current forms/portal and consult us or your tax advisor before acting. CA Somesh Chandak & Associates, FRN 158694W.