Ensuring hygienic and safe food for their consumers is a shared responsibility that the food industry operators must adhere to. Being food safety compliant is not only about evading legal penalties, but it also preserves brand integrity, safeguards consumers, and builds a sustainable corporate model. The Food Safety and Standards Authority of India (FSSAI), an independent, statutory body set up under the Food Safety and Standards Act 2006, binds food businesses with an FSSAI license to file an annual return separately. This obligation is applicable to every license acquired, even though the same FBOs or Food Business Operators own several permits.
Check out what FSSAI’s annual return is, its utility, the annual return types and the business categories covered, the deadline, and the penalties imposed for not filing the returns with a late fee payment.
What Does FSSAI Annual Return Mean?
The FSSAI annual return is a mandatory filing that FBOs in India need to submit. It discloses relevant details to the Food Safety and Standards Authority of India (FSSAI) concerning the FBO’s business transactions, such as manufacturing, storage, management, repacking, importing or exporting, and the delivery of food products.
- FSSAI Returns is the leading compliance that FBOs must follow to obtain their FSSAI license every year.
- FSSAI Annual Return filing is an obligatory duty for FBOs; failing to do so will make them liable for paying penalties.
- In certain instances, if there is a failure to file FSSAI Returns or non-compliance with the returns, penalties can be invoked.
- The FSSAI annual return is a form available both online and offline, and it requires submission by the FBOs within the stipulated timeframe.
FSSAI Returns Categories
Three categories of FSSAI Returns are present:
#1. Annual Return – Form D1
FSSAI Annual return must be compulsorily filed by all FBOs holding FSSAI licenses and a yearly turnover exceeding Rs. 12 Lakhs. It is also compulsory to file FSSAI Form D1 or annual return for FBOs carrying out business activities related to manufacturing, processing, importing, repacking, and relabelling. The form calls for details regarding the FBO’s name, license number, location, class, and volume of food items produced or processed, their raw material source, and value.
As respects Import or Export, the FBOs must list out the port name, or exporting nation, the imports/exports weightiness and value, and also the per kg rate or CIF/FOB per packaging unit.
The time limit for filing the FSSAI Annual Return is 31 May.
#2. Half-Yearly Return – Form D2
All FBOs transacting business in the processing or production of milk and milk products must file FSSAI Half-Yearly Return. The two timeframes for the half-yearly return are:
1 April -30 September, with a due date to file Form D2 within 31 October
1 October -31 March, with a due date to file Form D2 within 30 April
It is binding to file Half-Yearly Returns at best before one month of the last month of the time frame.
Details needed for filing Form D2 include FSSAI license/registration no, name and address of FBO, milk type – total MT quality, whole fat MT, entire SNF content, price per kg of milk, information of milk products purchase, reconstitution details, information regarding the conversion of milk into milk items for outsourcing to different dairies, Marketing details of milk, and particulars on the quantity of production of milk products, exports, and selling during the return filing period.
#3. FSSAI Return for Exporters
As the term implies, the FSSAI Quarterly Return must be filed in each quarter of the Financial year. Therefore, food exporters or FBOs handling food exports need to file the quarterly return.
While filing the quarterly return, the exporters need to furnish details regarding the name of the manufactured or procured food product, the FSSAI license/registration details, the name and address of the FSSAI license, the Opening and Closing MT balance, the Export value, the Category of the food product, the Export country, the Landing no., and the date of the bill.
Key Note: FSSAI Returns need exclusive filing by the business operators for every FSSAI Registration.
Penalty Imposed For Non-Filing FSSAI Returns
As per the regulations, FBOs that fail to submit FSSAI returns within the time limit will be liable to pay daily Rs. 100 fines for failing to file the return.
Business Categories Eligible for FSSAI Annual Return Filing
Form D1 attends to the job of annual return filing, which is incumbent upon the FBO classes within India. Here is a list of businesspersons eligible for return filing.
Importers and Manufacturers
Every FBO working in manufacturing or importing food products, barring milk products, is required to submit the annual return. These cover businesses related to:
- Processing, producing, or food packaging
- Food storage to effect a sale
- Food dissemination
- Selling food
Labellers, Relabellers and Repackers
FBOs dealing in labelling or relabelling and repacking of food items also come under the purview of annual return filing.
FBO Exempt from Annual Return Filing
#1. Grocery stores
#2. Fast-food outlets
#3. Restaurants
#4. Canteens having licenses for provisional events or mobile canteens
#5. Licensee FBOs in the class of permit holders or retail establishments having registration with a yearly income under Rs. 12 Lakhs are entitled to exemptions
These units are exempt from Annual Return filing. Nonetheless, these establishments need to apply for registration compulsorily.
Diligence must be followed during FSSAI returns disclosure of details, as they must match those set out in the license. Every FBO must take note of the accuracy of details, as any mismatch will force them to make the necessary amendments to their FSSAI permit.
Importance Of The Annual FSSAI Return
Acquiescence to the Annual FSSAI Return ensures that food entrepreneurs and business operators comply with the FSSAI regulations and restore transparency in their transactions. Moreover, filing the FSSAI returns is regulatory compliance under clause 2.1.13(1) of the Food Safety and Standards Regulations, 2011.
There is hardly any scope for food businesses to be negligent about return submission and its proof. Such omissions can inflict huge penalties.
Critical details are exchanged with the FSSAI through submission of annual return by FBOs, concerning their activities, covering food item manufacture, including their preservation, distribution, and handling. Food security, compliance, and consumer trust can be promoted by prompt submissions of annual return by food businesses that guarantee food safekeeping, encourages trust of consumers, and uphold conformity. Penalties can be invoked for non-compliance with this regulation, or, in extreme cases, the FSSAI license can be placed in suspension, endangering continuing business tasks.
The filing of FSSAI returns is mandatory for these underlying reasons.
- Responsibility: Orderly returns represent the supervision of the Food Business Operators (FBOs) activity.
- Compliance: It guarantees the observance of legal requirements set by the FSSAI.
- Evasion of Penalties: Timely filing helps avoid legal issues, enormous expenses, and fines.
- Transparency: This serves to enhance the operational transparency of the FBOs, thus improving community safety.
- Corporate Branding: Assures the business’s credibility.
- Operational Efficacy: Keeps accurate records and implements all functions in an organized manner.
Conclusion
All the FBOs spread across the country must submit their FSSAI returns.
Following the rules and deadlines and reporting complete information together contribute to regulatory and operational integrity and excellence.
You should be aware and follow food security policies in order to maintain consumer’s confidence and goodwill, and the business’s sustainability.
