Overview
If you sell food in any form — whether from your home kitchen, a rented outlet, or an online platform — you’re considered a Food Business Operator (FBO) under Indian law.
This blog is a one-stop legal and tax compliance guide for:
- Home-based tiffin providers
- Catering businesses
- Pickle, snack, or masala makers
- Online sellers via Swiggy, Zomato, Amazon, or Instagram
From FSSAI licensing to GST rules, income tax filing, and best practices — we’ve covered everything to help you stay compliant and confidently grow your business.
Table of Contents
Step 1: Mandatory Registrations — Before You Sell a Single Meal
Registration | Who Needs It | When to Apply | Legal Consequences |
FSSAI License | Anyone who prepares, stores, packages, or sells food | Before first sale | Up to ₹5 lakh fine + jail (Sec. 63, FSS Act 2006) |
GST Registration | Turnover > ₹20 lakh or selling online | Before invoicing customer | ₹10,000 per return + 18% interest |
Udyam (MSME) Registration | Optional for small manufacturers/dealers | After initial setup | No penalty, but you lose MSME benefits |
What is FSSAI & Why It’s Mandatory
The Food Safety and Standards Authority of India (FSSAI) regulates all food-related businesses under the FSS Act, 2006.
If you are:
- Selling tiffin or lunch boxes from home
- Running a cloud kitchen
- Manufacturing pickles or masalas
- Operating a catering service
- Selling food on Amazon, BigBasket, Swiggy, Zomato
—you are legally required to obtain FSSAI registration or license.
📌 Legal Reference: Section 31, FSS Act, 2006
Types of FSSAI Licenses
License Type | Turnover Criteria | Suitable For | Govt. Fees | Validity |
Basic Registration | Up to ₹12 lakh/year | Home kitchens, small vendors | ₹100/year | 1–5 years |
State License | ₹12 lakh – ₹20 crore | Mid-sized units | ₹2,000–₹5,000/year | 1–5 years |
Central License | > ₹20 crore OR online/interstate sellers | Exporters, e-commerce sellers | ₹7,500/year | 1–5 years |
👉 Selling via Swiggy, Zomato, or Amazon? You’ll likely need a Central License even if your turnover is below ₹20 lakh.
How to Apply for FSSAI Registration
- Visit the official FSSAI portal: https://foscos.fssai.gov.in
- Choose “Apply for Registration” or “License”
- Fill the form, upload documents, and pay the fee
- Verification is done by the local FSSAI Designated Officer
- Receive your 14-digit FSSAI License Number — mandatory to print on invoices and food packaging
Documents Required for FSSAI Basic Registration
For home-based operators, caterers, or micro units:
- PAN & Aadhaar of the owner
- Address proof (utility bill or rent agreement)
- Photograph of proprietor
- List of food items
- Business activity declaration (Form B)
- Optional: Photos of kitchen or premises
For State/Central licenses:
- Water testing report
- Kitchen layout plan
- NOC from municipality
- Food safety management plan
- Trade license or shop act registration
GST Compliance for Food Sellers
Rule | Details |
GST Threshold | ₹20 lakh (₹10 lakh in NE and hill states) |
GST Rate | 5% or 12% (depending on packaging/service) |
Composition Scheme | Allowed at 1% for food traders/manufacturers |
Returns | GSTR-1 (monthly sales), GSTR-3B (monthly payment), CMP-08 (if composition) |
Annual Return | GSTR-9 (if turnover > ₹2 Cr) |
📌 Online food sellers — regardless of turnover — must register for GST under Section 24(ix) of CGST Act.
Income Tax Rules for Small Food Businesses
Criteria | Presumptive Scheme (44AD) | Regular Taxation |
Turnover | Up to ₹3 Cr (if digital) | More than ₹3 Cr |
Minimum Profit Declaration | 6% (digital) / 8% (cash) | Actual profits as per books |
Books Required | ❌ No | ✅ Yes |
Audit Required | ❌ No (if profit ≥6%) | ✅ Yes if profit <6% and income > exemption limit |
ITR Form | ITR-4 (presumptive) | ITR-3 (books + audit) |
🔎 Note: Declaring profit below 6%? If total income exceeds ₹3 lakh, audit becomes mandatory under Section 44AB(e).
Key Tax & Compliance Dates (FY 2024–25)
Compliance | Due Date |
FSSAI License Renewal | At least 30 days before expiry |
GSTR-1 | 11th of every month |
GSTR-3B | 20th/22nd/24th of every month |
Advance Tax (if applicable) | 15 June, 15 Sep, 15 Dec, 15 Mar |
ITR Filing (non-audit) | 31 July 2025 |
ITR Filing (audit) | 31 October 2025 |
GST Annual Return | 31 December 2025 |
Other Useful Registrations
Registration | Why It’s Useful | Portal |
Udyam (MSME) | Access to subsidies, loans, delayed payment protection | |
Trademark | Protects brand or logo | |
Shop & Establishment Act | Legally required in most states for commercial premises | State Labor Department Portals |
Compliance Checklist – For Smooth Operations
Task | Mandatory? | Why It’s Important |
Obtain FSSAI License | ✅ Yes | Legal compliance under FSS Act |
Register for GST | ✅ If applicable | Required for online/platform selling |
Track Digital Payments | ✅ Yes | To remain eligible for presumptive tax |
Maintain Purchase & Sale Invoices | ✅ Yes | For GST and ITC tracking |
Renew FSSAI License | ✅ Yes | Late renewal = penalty + deactivation |
Declare Food Ingredients & Allergens | ✅ Yes | Required on labels as per FSSAI |
List Source of Ingredients | ✅ Yes (for packagers) | Ensures traceability |
File Taxes on Time | ✅ Yes | Avoid penalties, interest, or scrutiny |
Final Thoughts
FSSAI and tax compliance are not just about following rules — they’re about building consumer trust, avoiding penalties, and expanding your food brand responsibly.
Whether you’re delivering meals from your kitchen, selling homemade sweets, or planning to launch a brand on Amazon — getting your FSSAI license, GST registration, and ITR filing right sets the legal foundation for your business success.
Government Portals & Resources
- FSSAI License Portal: https://foscos.fssai.gov.in
- Udyam MSME Portal: https://udyamregistration.gov.in
- GST Registration: https://www.gst.gov.in
- Income Tax Filing: https://www.incometax.gov.in
Thanks for the reading
Got a doubt or a personal tax situation to discuss? Drop it in the comments below – our tax experts respond regularly.
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