The Ministry of Health and Family Welfare approved a package of licensing reforms in March 2026, and the substantive changes took effect on 1 April 2026. Two of them matter to almost every food business in India: licences no longer expire, and the turnover slabs that decide which licence you need have moved substantially.
Perpetual validity replaces the renewal cycle
FSSAI registrations and licences were previously issued for one to five years and had to be renewed before expiry. Missing that date was one of the most common and most expensive compliance failures in the sector, because an expired licence means the business is operating unlicensed rather than merely late on paperwork.
Under the revised framework, registrations and licences carry perpetual validity. The renewal cycle is gone.
What has not gone away:
- Modification applications. If your products, premises, constitution or management change, the licence still has to be updated. Perpetual validity is not permission to let the licence drift out of date.
- Annual returns, where they apply to your category.
- Record keeping and inspection readiness. FSSAI has moved to a risk based inspection and audit framework, which means the quality of your food safety management system now has a direct bearing on how often you are inspected.
The reform reduces paperwork. It does not reduce the underlying compliance obligation, and in some ways it raises the stakes on the parts that remain, because enforcement resource freed from processing renewals is being redirected towards inspection and monitoring.
The new turnover thresholds
| Category | Annual turnover from 1 April 2026 |
|---|---|
| Registration | Up to Rs 1.5 crore |
| State Licence | Above Rs 1.5 crore and up to Rs 50 crore |
| Central Licence | Above Rs 50 crore |
The change at the bottom of the table is dramatic. The registration ceiling moved from Rs 12 lakh to Rs 1.5 crore, which means a very large number of small manufacturers, retailers and food service businesses that previously needed a State Licence now qualify for instant registration instead, with lower fees, no pre-inspection and far less paperwork.
Turnover is not the only trigger
This is where businesses still get caught. Certain activities require a Central Licence no matter how small the turnover is:
- Importing any food article
- Exporting, and 100% export oriented units
- Operating as an e-commerce food business operator
- Running food businesses in more than one state under a single head office, which requires the head office to hold a Central Licence
- Supplying Indian Railways, Defence establishments or Central Government agencies
- Operating at ports, airports and seaport premises
A business with Rs 40 lakh of turnover that imports one ingredient needs a Central Licence. The turnover table is only the starting point.
If your category is changing
FSSAI has provided for migration through FoSCoS on the basis of self declaration by the food business operator, with the system handling the change at the backend rather than requiring separate approval from the licensing or registering authority.
Two practical cautions before you migrate downward:
Check your commercial commitments first. Marketplaces, quick commerce platforms, institutional buyers and export customers frequently write a specific licence tier into their supplier agreements. Dropping from a Central Licence to a State Licence because your turnover permits it can breach a supply contract that has not been read recently.
Check your activities, not just your revenue. If any activity trigger applies, the turnover slab is irrelevant and you stay on a Central Licence.
What to do now
- Confirm which slab your current turnover puts you in, and separately confirm whether any activity trigger applies.
- If the two answers point to a different tier than the licence you hold, plan the migration rather than leaving it.
- Stop tracking a renewal date and start tracking modification triggers instead: new products, new premises, change in directors or partners, change in constitution.
- Treat your food safety management system as the thing inspections will now turn on, because under risk based inspection it largely determines your inspection frequency.
If you are unsure which tier applies to your business after the reform, send us your turnover, premises and activity details and we will confirm the position in writing.