The best-known FSSAI charge is the annual-return late fee: ₹100 per day for each day the Form D1 return is filed late, capped at five times the annual fee. Separately, if the annual fee that keeps your licence active is not paid, the licence is deemed suspended and you cannot operate. Operating without any FSSAI registration or licence, and non-compliance with food-safety rules, attract far larger fines under the FSS Act — plus the risk of your food business being ordered to stop.
What happens if the FSSAI annual fee is not paid?
An FSSAI registration or licence is now valid indefinitely, so there is no expiry to chase and no late-renewal fee. What replaces it is the annual fee: you pay it each year on FoSCoS to keep the licence active. If the annual fee is not paid, the licence is deemed suspended — and a suspended licence cannot be used to operate.
This is the single most common — and most avoidable — compliance failure food businesses face. There is no per-day rupee charge attached to the deemed suspension itself, but the consequence is more serious than any late fee: while suspended, you are not authorised to carry on the food business at all, and operating anyway exposes you to enforcement action under the FSS Act.
Licences issued before April 2026 may still show an expiry date on FoSCoS during the transition — we keep your annual fee paid so your licence stays active. Whether your record shows an annual-fee date or a legacy expiry date, the safeguard is the same: pay well ahead of time.
CAREALL tracks your annual-fee date and pays it on the FoSCoS portal ahead of time so the licence is never deemed suspended. If your licence has already slipped, we clear the outstanding fee immediately and track it to confirmation.
What is the penalty for operating without an FSSAI licence?
Running a food business without the required FSSAI registration or licence is an offence under the Food Safety and Standards Act, 2006, and can attract a substantial fine plus, in serious cases, imprisonment — this is far heavier than the annual-return late fee.
Every Food Business Operator (FBO) in India must hold a valid FSSAI number appropriate to their scale before commencing operations. The category depends on turnover and activity: Basic Registration for turnover under ₹1.5 crore, a State Licence for ₹1.5 crore to ₹50 crore within a single state, and a Central Licence above ₹50 crore or for importers, exporters, multi-state operators and large e-commerce sellers.
The exact fine is decided by the Food Safety Officer and adjudicating authority based on the nature and gravity of the violation, so we do not quote a fixed rupee figure — it varies case to case. What is certain is that the penalty for having no licence dwarfs the cost of simply obtaining one.
There is also a commercial consequence: platforms such as Swiggy, Zomato, Amazon, Flipkart, Blinkit and ONDC will not list — and will de-list — a food seller without a valid FSSAI number. Trading without one can mean losing your online storefront entirely.
What are the penalties for FSSAI non-compliance?
FSSAI non-compliance penalties apply when you hold a licence but breach food-safety conditions — for example selling sub-standard or misbranded food, poor hygiene, incorrect labelling, or failing to file the annual return. These attract fines under specific sections of the FSS Act, with amounts set by the adjudicating officer.
Common non-compliance triggers include: food that is sub-standard or of poor quality, misbranded or wrongly labelled products, food containing extraneous matter, unhygienic manufacturing or storage conditions, and operating outside the conditions printed on your licence (such as a product category or capacity you were not licensed for).
A separate, easily-missed obligation is the annual return. Licensed manufacturers and importers must file Form D1 by 31 May each year, and dairy units handling milk/milk products file a half-yearly Form D2. Late filing of the annual return carries a ₹100-per-day late fee for each day of delay, capped at five times the annual fee, so it should not be treated as optional paperwork.
We do not invent specific fine amounts here because they are determined by the authority for each case. The practical takeaway is that compliance — correct category, accurate labels, on-time returns, hygienic conditions — is always cheaper than the penalty for skipping it.
How much do FSSAI penalties cost — at a glance?
The table below summarises the main FSSAI penalty situations and what drives the cost. Only the annual-return late fee is a fixed, published daily amount; the others are decided case-by-case by the food-safety authority, so treat them as a guide to severity, not exact figures.
| Situation | What triggers it | What you pay |
|---|---|---|
| Annual fee unpaid | Not paying the annual fee that keeps the licence active | Licence deemed suspended — cannot operate until it is cleared |
| No licence / registration | Operating a food business with no valid FSSAI number | Substantial fine (and possible imprisonment in serious cases) — set by the authority; plus de-listing from online platforms |
| Sub-standard or misbranded food | Quality, labelling or branding breaches | Fine determined by the adjudicating officer per the FSS Act |
| Unhygienic conditions | Poor manufacturing, storage or handling | Fine and possible improvement notice or closure order |
| Annual return not filed | Missing the Form D1 (31 May) or Form D2 deadline | Per-day late-filing penalty on the pending return |
| Wrong licence category | Trading beyond your turnover or activity limits | Treated as a compliance breach; may require upgrade plus penalty |
How can I avoid FSSAI penalties altogether?
The reliable way to avoid FSSAI penalties is to hold the correct category of licence, keep the annual fee paid so it stays active, keep your labels and hygiene compliant, and file your annual return on time. Almost every FSSAI penalty comes from a missed date or the wrong licence tier — both are preventable.
Start by confirming you are in the right category: Basic Registration under ₹1.5 crore turnover, State Licence up to ₹50 crore in one state, and Central Licence above that or for importers, exporters, multi-state and large e-commerce operations. Trading beyond your tier is itself a breach, so review your category as your business grows.
Diarise two recurring dates: your annual-fee date (pay before it, never after) and 31 May for the Form D1 annual return if you are a manufacturer or importer. Missing either is what triggers a deemed suspension or starts the late-return penalty clock described above.
CAREALL files your application, annual fee, modification and annual return on the government FoSCoS portal, and monitors your annual-fee and return deadlines so a deemed suspension and the daily late-return penalty never begin. The licence itself is issued by the Food Safety and Standards Authority of India; our role is to keep your paperwork correct and on time, and we track every filing to issuance.
Frequently asked questions
Is there still a daily late-renewal penalty on FSSAI licences?
No. Licences are now valid indefinitely, so there is no renewal and no per-day late-renewal fee any more. Instead, if the annual fee that keeps the licence active is not paid, the licence is deemed suspended and you cannot operate until it is cleared. The ₹100-per-day charge that does remain is on the annual return (Form D1), capped at five times the annual fee — a separate obligation.
What happens if I run a food business without any FSSAI licence?
Operating without the required FSSAI registration or licence is an offence under the FSS Act, 2006, and can attract a substantial fine and, in serious cases, imprisonment. The exact amount is decided by the food-safety authority. You also cannot list on Swiggy, Zomato, Amazon, Flipkart, Blinkit or ONDC, and can be de-listed if already selling.
Is there a penalty for filing the FSSAI annual return late?
Yes. Licensed manufacturers and importers must file Form D1 by 31 May each year, and dairy units file a half-yearly Form D2. Filing after the deadline attracts a ₹100-per-day late fee for each day of delay, capped at five times the annual fee, so the annual return should never be treated as optional paperwork.
Can a deemed-suspended FSSAI licence be treated as no licence at all?
Yes. If the annual fee stays unpaid and the licence remains deemed suspended, authorities can treat continued trading as operating without a valid licence — a far more serious matter than a fee. This is why you should pay the annual fee well ahead of its due date; if the licence has already been suspended, clear the outstanding fee and restore active status promptly.
Does CAREALL pay my FSSAI penalty for me?
No. Any government fee or penalty is paid to the FSSAI through the FoSCoS portal; our professional fee is separate. What CAREALL does is prevent penalties — we track your annual-fee and annual-return dates and file ahead of time so a deemed suspension and the late-return charge never start, and we track every filing to issuance.
This guide is kept current for 2026. It is general information, not legal advice — for your specific case, talk to a CAREALL consultant.