The largest food licensing authority in India FSSAI has taken measures to amend the rules for the registration of the food business. The authoritative body took the decision after the roll-out of the Goods and Services Tax Act. Also, the government has made the new taxation regime mandatory for almost every business. Now the Foods Safety and Standards Authority of India (FSSAI) will align the food businesses on the basis of their annual incomes. This way the process to match the norms of the registration and licensing of these food companies with GST rules would become easier.
Being in the food business would make you bound to get the license from the central or state government in order to operate the business. And following the registration, the government also provides the license depending upon the type of food the company is dealing in. But in the case of the petty food manufacturers, the licensing is not mandatory. And the prime reason behind these businesses not obtaining a license is their turnovers. These businesses have a turnover of INR 12 lakhs, lesser than those companies having an FSSAI license.
The amendment of turnover limit
Since the turnover limit under the Goods and Services for the businesses is INR 20 lakhs, the FSSAI has decided to imply the same for the petty manufacturers. Increasing the turnover limit would bring most of the businesses liable to get the license and thus, it would become easier to comply with the regime. In addition, to make GST compliance for the businesses easier, the FSSAI would also reduce the kind of businesses in the food industry. Currently, 17 categories are functional but FSSAI, to make GST training hassle-free, would reduce it to a minimum of 7.
Revamping the portal
As you must know that there are millions of businesses registered under FSSAI. Hence, the process to streamline all these food businesses is a time-consuming task. But there’s nothing to worry about as the FSSAI has decided to revamp the portal used for registration. The authority has proposed that a robust and modern e-portal is under development that will make the process of registration and license faster. And since keeping a record of the GST compliance is necessary, this portal would also help to maintain the record the taxation status of the food businesses.
History of the companies
The Foods Safety and Standards Authority of India has decided that before registering the business with the newly revamped portal would first check the prior record of the businesses. The main parameters to be verified would be:
Besides the above-mentioned areas, the FSSAI would also verify the labeling norms functional in the business for an effective GST training. And once these areas are successfully verified, you could easily register the business and obtain the license as per the new norms. The main motive of these changes is not only to make the food industry stand equal to the regime but to promote self-compliance as well.
The FSSAI implementing new changes in the registration process would ultimately lessen your burden of compliance with the GST bill details. Moreover, the food licensing authority has come up with a new idea to ensure the hygiene and quality of the restaurants. A new rating mechanism would be launched through which any food business could voluntarily check their restaurant’s performance as per the standard parameters. Such activities are already on trend in some of the A-class restaurants all around the world. This would also give the people involved in the food business to promote hygiene and even tell the customers about the same. However, a third party agency would be responsible to provide the ratings to the interested restaurants.
Subsequently, the tax revenue collections from the food industry would also increase. The streamlined process of food production and distribution to the consumers is expected to raise the net worth of the food industry to touch the trillion dollars mark.
As the Indian economy is expanding, there has been a significant increase in the inclination of the people towards the food business. As per now, there are around 50 lakhs food businesses both registered and unregistered. And these numbers are expected to boost in the coming years. The people have become more explorative and interested towards the international cuisines. So, the FSSAI assuring that proper norms are followed and also compliance with the Goods and Services Tax Act is uncompromised. And if the food business would keep in growing at the same pace, it will soon become one of the leading industries responsible for the majority of the revenue collections.