According to Food Safety and Standard Authority of India (FSSAI) laws, obtaining a food licence is one of the most important procedures in beginning a food business. Once you have obtained the food/FSSAI licence, you can start your business freely and legally.
Further, as per Food Safety and Standards (Licencing and Registration of Food Businesses) Regulations, 2011, it is also necessary to comply with FSSAI requirements and file annual returns.
Food Business Operators must comply with FSSAI compliances and file the FSSAI Annual Return after receiving the FSSAI Licence. Food Business Operators must file their yearly returns within the time frame specified or face fines and penalties.
Benefits of Complying with FSSAI Annual Return in India
There are various advantages to filing FSSAI Annual Returns in India, some of them are as mentioned below:
- Enhanced Reputation: Complying with FSSAI Annual Returns in India helps maintain and enhance the overall reputation of a registered establishment or individual. By fulfilling the obligations prescribed by the Government of India, the entity gains the trust of the public.
- Increased Brand Value: Companies holding an FSSAI licence and demonstrating compliance with all the required regulations tend to gain a higher reputation among consumers. This increased brand value sets them apart from non-compliant entities in the market.
- Government Support: Complying with FSSAI requirements for annual Compliance also results in gaining more government support. Entities that adhere to FSSAI regulations receive additional assistance and backing from the government.
- Consumer Trust: By ensuring compliance with FSSAI Annual Returns, businesses can earn the trust of consumers. The public tends to have more confidence in entities that prioritise food safety and meet the necessary compliance standards.
- Legal Protection: Complying with FSSAI Annual Returns protects businesses from legal issues and penalties. By adhering to the regulations, entities can avoid potential fines, lawsuits and other legal consequences, ensuring their long-term sustainability.
- Competitive Advantage: Having an FSSAI licence and complying with the necessary requirements provides a competitive edge in the market. Compliance showcases a commitment to quality and safety, attracting more customers and distinguishing the entity from non-compliant competitors.
- Improved Business Opportunities: Complying with FSSAI Annual Returns opens doors to new business opportunities. Many organisations and institutions require their suppliers to have FSSAI compliance, enabling compliant entities to access a broader customer base and potential partnerships.
- Quality Assurance: FSSAI compliance guarantees adherence to food safety standards, ensuring that the food products offered by the entity are of high quality. This commitment to quality can lead to increased customer satisfaction and loyalty.
- Health and Safety: Complying with FSSAI regulations ensures the health and safety of consumers by preventing the sale of substandard or unsafe food products.
Necessary Details in FSSAI Annual Return
To complete the FSSAI Annual Return Form, the following details must be necessarily provided:
FSSAI Annual Return (Form D1):
- Full name and address of the Food Business Operator:
- The legal name and complete address of the entity responsible for the food business operations.
- FSSAI License Number:
- The unique identification number issued by the Food Safety and Standards Authority of India (FSSAI) to the Food Business Operator.
- Statement showing quantities of food items:
- This statement should include information about the quantities of food items involved in various activities, such as manufacturing, exporting, importing and handling.
- For each food product, provide the following details:
- Name of the food product that is exported, imported, or manufactured, handled.
- Quantity of the product in metric tonnes.
- The Value of the food items.
- Size of the packaging, specifying details like bottle, can, bulk package or any other relevant packaging format.
- Import/Export details (if applicable):
- In case of import or export activities, include the following additional information within the statement:
- Name of the port or nation of export.
- Quantity of the food items imported or exported, measured in kilograms.
- Value of the imported or exported items.
- Rate per kilogram or per unit of packing, specifying whether it is Free on Board (FOB) or Cost, Insurance and Freight (CIF).
FSSAI Half-Yearly Return (Form D2):
The FSSAI half-yearly return, known as Form D2, requires the following details to be provided:
- Name and Address of Food Business Operator:
- The complete name and address of the Food Business Operator, as registered with the FSSAI.
- FSSAI License Number:
- The unique licence number issued by the FSSAI to the Food Business Operator.
- Details of milk product purchases:
- Include information related to the purchase of milk products or items, such as:
- Source of purchase.
- Average fat content of the purchased milk products.
- Name of the milk product.
- Total quantity purchased.
- Quantity of Solid-Not-Fat (SNF) used.
- Closing balance of milk products.
- Reconstitution details:
- Provide details regarding any reconstitution processes carried out with the milk products.
- Procurement details:
- Include information about the procurement of milk, such as:
- Type of milk.
- Total quantity in metric tonnes.
- Total SNF content in metric tonnes.
- Price per kilogram of milk.
- Fat content of the milk.
- SNF content of the milk.
- Details of milk marketing:
- Specify the marketing activities related to milk, such as distribution and sales channels.
- Details of milk products:
- Provide information about the milk products manufactured, sold and the current stock position.
- Statement showing quantities of milk products manufactured and exported:
- Include a statement that shows the quantities of milk products manufactured and exported during the specified period, along with their corresponding sale value.
Kinds of FSSAI Annual Returns
Food businesses are obligated to submit two types of returns annually:
Form D1 of the FSSAI
FSSAI Form D1 needs to be filed by various entities involved in the food industry, such as food manufacturers, importers, labellers, re-labellers, packers and re-packers. The filing can be done either online or in physical form, as instructed by the Food Safety Commissioner. Regardless of the revenue generated by the Food Business Operator (FBO) in the previous year, filing Form D1 is mandatory.
Form D2 of the FSSAI
The Form D2 is a half-yearly return that is not required of every food business operator. Alternatively, this must be deposited by any FSSAI licence holder who is involved in the manufacturing or importation of milk and/or milk products. Form D2, the FSSAI annual return, must be filed every six months.
Food Business Annual Return Due Date
1. FSSAI Form D1
This form is meant for filing by food manufacturers, importers and other relevant entities by May 31st of each year.
The deadline for submitting the Annual Return for Fiscal Year 2022-23 has however been relaxed to June 30, 2023.
2. FSSAI Form D2
The compliance dates to be followed for Form D2 is:
- For the period from April 1st to September 30th: The form must be filed by October 31st.
- For the period from October 1st to March 31st: The form must be filed by April 30th.
Who is eligible to file the FSSAI Annual Return?
The following entities are eligible to file FSSAI annual returns:
- Food Business Operators engaged in selling, importing, manufacturing, storing, handling, exporting, distributing or transporting any type of food product.
- Food Business Operators with a business turnover exceeding Rs. 12 lakhs.
- Food Business Operators involved in the distribution and manufacturing of milk.
Who is exempt from filing the FSSAI annual return?
Entities that are exempted from filing the FSSAI Annual Return include:
- Canteens:
- Canteens operating within institutions, such as schools, colleges, offices and hospitals, are exempted from filing the FSSAI Annual Return.
- Restaurants:
- Restaurants, whether standalone or part of a hotel or resort, are exempted from filing the FSSAI Annual Return.
- Fast-food joints:
- Fast-food joints, including popular chains and small-scale establishments, are exempted from filing the FSSAI Annual Return.
- Grocery stores:
- Grocery stores, which primarily sell packaged food products and raw ingredients, are exempted from filing the FSSAI Annual Return.
Penalty for FSSAI Annual Return Late Filing
According to Section 2.1.13 (3) of the FSS (Licencing and Registration) Regulations, 2011, if food company administrators do not file the return within the required period, a fine of Rs 100 will be imposed on them regularly and will extend if the default continues.
Final Thoughts
Obtaining a food licence and complying with FSSAI regulations are essential steps for food businesses to operate legally and gain consumer trust. Filing the FSSAI Annual Return is an important compliance requirement that helps businesses maintain their reputation, enhance brand value and receive government support. Compliance with FSSAI regulations ensures consumer trust, legal protection and a competitive advantage in the market. Filing accurate and timely FSSAI Annual Returns is therefore important and both online and offline methods are available for submission.
Different forms, such as Form D1 and Form D2, cater to specific types of food businesses. While certain entities like canteens, restaurants, fast-food joints and grocery stores are exempted from filing the FSSAI Annual Return, non-compliance can result in penalties. It is important for food business operators to understand the due dates and necessary details required for filing FSSAI returns to avoid fines and maintain compliance with food safety standards.
For more clarity and information on the FSSAI annual return filings and compliances, connect with our team of experts at StartupFino.
