Choosing the wrong FSSAI category is the #1 reason for marketplace de-listings and penalty notices. Here's an honest, founder-friendly comparison of all 3 categories.
FSSAI is not a single licence — it is three different categories, and most founders pick the wrong one because they confuse 'registration' with 'licence'. This article cuts through the jargon and tells you exactly which one you need, what it costs, what it covers, and what happens if you outgrow it.
Basic is intended for petty food businesses — annual turnover up to ₹12 lakh, with operations limited to a small area. It uses Form A, costs ₹100/year, and is usually auto-approved on the FoSCoS portal.
State Licence is the middle tier — for FBOs with annual turnover between ₹12 lakh and ₹20 crore, operating within a single state. It uses Form B and costs ₹2,000–₹5,000/year depending on category (manufacturer, marketer, distributor, restaurant, etc.).
Central Licence is mandatory for the largest and most cross-border food businesses. It is required for FBOs with turnover above ₹20 crore, every food importer / exporter, e-commerce platforms, central government suppliers, airlines, railways and seaports food units.
| Parameter | Basic | State | Central |
|---|---|---|---|
| Annual turnover | Up to ₹12 lakh | ₹12 lakh – ₹20 crore | Above ₹20 crore |
| Geography | Local / intra-state | Within one state | Multi-state / pan-India |
| Form | Form A | Form B | Form B |
| Govt. fee | ₹100/year | ₹2,000–₹5,000/year | ₹7,500/year |
| Validity | 1–5 years | 1–5 years | 1–5 years |
| Inspection | Usually none | Risk-based | Mandatory for most units |
| Timeline | 1–7 days | 7–15 days | 30–60 days |
| Renewal penalty | ₹100/day | ₹100/day | ₹100/day |
If you're a fast-growing cloud kitchen, plan ahead — apply for State Licence even if turnover is currently ₹8 lakh. You'll save 6 weeks of paperwork when you cross ₹12 lakh.
FSSAI lets you upgrade from Basic to State (or State to Central) by filing a modification through the FoSCoS portal. The upgrade must be done within 30 days of crossing the threshold. Taxpex monitors client turnover and proactively migrates licences before any compliance gap appears.
Yes — though most home bakers under ₹12 lakh choose Basic. If you plan to scale fast or want extra credibility with corporate clients, State is a legitimate choice.
One Central Licence covers operations across all states, but each manufacturing or storage premise typically needs a separate licence. Always confirm with an expert.
No — each business location must hold exactly one FSSAI licence in the highest applicable category. Multiple licences for one premise are invalid.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 14 June 2026 · Updated on 14 June 2026.
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When a supplier gives you a GST-inclusive price and you need to break it into base + GST for invoicing or ITC reconciliation.
via Reverse GST CalculatorIf your service turnover crosses ₹20 lakh (₹10 lakh in special category states) or you supply inter-state, yes. We help you assess and register.
via GST Registration & FilingYes — every state where you have a place of business requires a separate registration.
via GST RegistrationCGST + SGST applies for intra-state supplies (supplier and place of supply in same state). IGST applies for inter-state and imports.
via GST Calculator