FSSAI License for Restaurants and Hotels: What’s Required Alongside MVAT

FSSAI license restaurants hotels 2026 — TaxKitab

If you checked your FSSAI category any time before April 2026, that check is now outdated. The thresholds changed significantly, and a category that required a State License last year might only need basic registration now.

FSSAI thresholds changed from 1 April 2026: Basic Registration now covers turnover up to ₹1.5 crore (up from ₹12 lakh), State License covers ₹1.5 crore to ₹50 crore, and Central License applies above ₹50 crore. Hotels are categorized by star rating, not turnover alone.

Not sure which FSSAI category your restaurant or hotel falls into now? WhatsApp us and we’ll check against the new thresholds.

Quick Summary — FSSAI Categories From 1 April 2026

CategoryTurnover ThresholdNotes
Basic RegistrationUp to ₹1.5 crorePreviously ₹12 lakh — major increase
State License₹1.5 crore to ₹50 crorePreviously ₹12 lakh to ₹20 crore
Central LicenseAbove ₹50 crorePreviously above ₹20 crore
Hotels (special rule)Star-rating based5-star and above need Central License regardless of turnover; up to 4-star need State License
CaterersUp to ₹50 crore — State License; above — Central LicenseSeparate from the general restaurant tier

Why Hotels Don’t Follow the Standard Turnover Rule

This is the detail most hospitality businesses miss. A 5-star hotel needs a Central License regardless of its turnover figure — even if turnover alone would suggest State License is sufficient. The star rating itself determines the category for hotels specifically, a different rule from the general turnover-based system that applies to restaurants, retailers, and most other food businesses.

Perpetual Validity Changes Your Renewal Planning Entirely

Licenses and registrations issued from 1 April 2026 carry perpetual validity — no periodic renewal required at all, as long as you maintain ongoing compliance. This is a genuine shift from the old system of recurring renewal deadlines. If you’re used to tracking an FSSAI renewal date annually, that specific task disappears for licenses issued under the new framework — though you still need to maintain hygiene and safety compliance continuously.

What This Means If Your Turnover Has Shifted Categories

If your restaurant or hotel’s turnover now places it in a different tier than before — likely downward, given how much the thresholds increased — you can apply for a category modification through the FoSCoS portal. Moving down a tier (say, from State License to Basic Registration) means surrendering the old license while the new registration takes effect; moving up still requires the standard upgrade process if your turnover has grown into a higher band.

Where This Connects to Your MVAT and Liquor Compliance

If you run a hospitality business with a liquor license, FSSAI sits alongside, not instead of, your MVAT and Profession Tax obligations for the liquor side of the business. These are entirely separate compliance tracks — an FSSAI category change doesn’t affect your MVAT filing requirements, and vice versa. Businesses sometimes assume one system’s simplification carries over to the other; it doesn’t.

A Few Other 2026 Changes Worth Knowing

Street food vendors already registered under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 are now automatically deemed FSSAI registered, removing a duplicate registration step for that specific category. Inspections are now risk-based rather than tied to a fixed calendar, meaning your compliance history and food category risk level — not just a routine schedule — determine how often you’re inspected.

Frequently Asked Questions

Do I need to do anything if my turnover hasn’t crossed into a new FSSAI category?

No immediate action is required if your category stays the same — but it’s worth confirming your turnover calculation against the new thresholds rather than assuming nothing’s changed without checking.

Does perpetual validity apply to licenses issued before April 2026?

The reforms apply specifically to licenses and registrations issued from 1 April 2026 onward — confirm your specific license’s status and renewal requirement if it was issued before that date.

Is the FSSAI category change free, or does it cost anything?

Migration to the new threshold category is described as free and automatic, without changing your existing license number — though confirm current FoSCoS portal guidance for your specific situation.

Does a cloud kitchen attached to a restaurant need a separate FSSAI registration?

Generally not, if it’s operated by the same legal entity from the same premises — but multiple distinct food businesses at the same location should each be covered appropriately under the license.

Does every restaurant require a Central FSSAI Licence if it operates in multiple states?

No. Operating in multiple states does not automatically require every restaurant outlet to obtain a Central FSSAI Licence. Each outlet must obtain the appropriate licence based on the applicable FSSAI criteria, while the company’s head office or registered office generally requires a Central Licence for multi-state operations.

References

  • Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 (notified 10 March 2026)
  • FSSAI Implementation Order dated 13 March 2026

⚠️ These thresholds are genuinely new as of 1 April 2026. Confirm current category requirements directly on the FoSCoS portal before assuming your previous classification still applies.

Last Updated: 08 July 2026

Reviewed By: TaxKitab Team

This sits alongside our post on MVAT and PTRC changes for Maharashtra hospitality businesses — together they cover the two compliance tracks a liquor-licensed hospitality business needs to manage in parallel.

Call or WhatsApp: +91 7448200422 Email: info@taxkitab.com Website: taxkitab.com See our Hospitality & MVAT Compliance service, or visit Contact.

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