FSSAI Annual Return Scrutiny – Penalties for False or Incomplete Data by FBOs

FSSAI Tightens Annual Return Scrutiny for Food Business Operators – Penalties for Inaccurate Data

Executive Summary / Key Highlights

FSSAI intensifies scrutiny of annual returns submitted by food business operators (FBOs).
Mandatory online filing via FoSCoS since FY 2020–21.
Revision facility introduced from 8 January 2024 to rectify inadvertent errors.
False or misleading information attracts penalties under Section 61 of the FSS Act, 2006.
Licensing authorities directed to strictly verify data for accuracy.
Compliance aimed at strengthening data integrity and regulatory accountability.

Definition and Scope of FSSAI Annual Return Filing

The annual return is a mandatory compliance submission under the Food Safety and Standards Act, 2006 for eligible food business operators, detailing the nature, quantity, and value of food handled in the previous financial year.

Scope of Applicability:

Applies to manufacturers, importers, exporters, re-packers, and certain distributors.
Must be filed even if there is no business activity in the year (nil return).
Filing done exclusively via the FoSCoS portal.

Applicability – Who Must File FSSAI Annual Returns

Category	Applicability
Manufacturers (including repackers)	Mandatory
Importers & Exporters	Mandatory
100% Export Oriented Units (EOUs)	Mandatory
Food Processors & Packers	Mandatory
Distributors (specific categories)	As notified
Retailers	Generally exempt unless specified

Step-by-Step Compliance Process for Annual Return Filing via FoSCoS

Step	Action	Timeline
1	Log in to FoSCoS	Before deadline
2	Select ‘Annual Return’ module	Annual
3	Fill in details – product category, quantity, value, sourcing details	Annual
4	Verify accuracy of data before submission	Ongoing
5	Submit return online	Within prescribed deadline (usually 31 May)
6	Use the ‘Revision/Update’ option (post 8 Jan 2024) if errors are found	As soon as possible
7	Keep acknowledgement for records	Permanent

Key Changes in the Current Order

Strict verification by licensing authorities.
Revision/Update facility introduced from 8 January 2024 to rectify errors.
Increased focus on detecting false declarations and discrepancies.
Reinforcement of penalties under Section 61 for false or misleading information.

Required Information & Common Mistakes to Avoid

Mandatory Information in Annual Return:

FSSAI licence number.
Product category and description.
Quantity manufactured/imported/exported.
Value of goods.
Source and destination details.

Common Mistakes:

Incorrect product codes.
Misstated quantities.
Missing value data.
Filing for the wrong licence year.

Penalties under Section 61 of the FSS Act, 2006

Offence	Penalty
False or misleading information in annual return	Up to ₹10 lakh
Delayed filing	Late fee (as notified)
Non-filing	Regulatory action, possible suspension of licence

Case Example – Avoiding Penalties through Revision Facility

A packaged food manufacturer filed its FY 2023–24 annual return but later discovered it had incorrectly reported quantities. Using the new FoSCoS revision facility, the company updated its return within the same month, avoiding penalty and ensuring compliance.

Regulatory Updates

18 Dec 2020 – Annual returns to be filed online only via FoSCoS.
8 Jan 2024 – Revision/Update facility introduced for correcting submitted returns.
6 July 2025 – FSSAI order directing strict scrutiny of annual returns by licensing authorities.

Expert Insights

This order marks a compliance tightening phase for the food sector. Businesses can no longer treat annual returns as a routine filing — accuracy and completeness are now under the microscope.

At Estabizz Fintech, we advise:

Conducting internal data audits before FoSCoS submission.
Maintaining raw data records for at least three years.
Using the revision facility promptly if discrepancies are found.

Conclusion & CTA

The FSSAI’s focus on data integrity in annual returns reflects its commitment to robust food safety governance. For FBOs, timely and accurate filing is not just a legal obligation but also a trust-building measure with regulators.

📞 Contact Estabizz Fintech for FSSAI compliance audits, FoSCoS filing assistance, and training to avoid penalties under Section 61.

Frequently Asked Questions (FAQs) – FSSAI Annual Return Scrutiny

General Understanding

1. What is the FSSAI annual return?
It’s a mandatory compliance report under the Food Safety and Standards Act, 2006 where eligible food business operators (FBOs) declare the quantity, value, and type of food handled in the previous financial year.

2. Who needs to file an FSSAI annual return?
Manufacturers, importers, exporters, re-packers, and certain distributors must file annual returns. Retailers are generally exempt unless specified by FSSAI.

3. Is annual return filing mandatory for small food businesses?
Yes, if they fall under the categories listed in the FSSAI guidelines, even small FBOs must file.

4. When is the deadline for filing the FSSAI annual return?
Usually 31 May of the following financial year, unless FSSAI extends the deadline.

5. Where is the FSSAI annual return filed?
It must be filed online via the FoSCoS portal.

FoSCoS & Filing Process

6. What is FoSCoS?
The Food Safety Compliance System (FoSCoS) is FSSAI’s online platform for licensing, registration, and compliance, including annual return filing.

7. How do I file my annual return on FoSCoS?
Log in, select the ‘Annual Return’ module, enter accurate product, quantity, and value details, review, and submit.

8. Can I file my FSSAI annual return manually?
No, since FY 2020–21, filing is only through the FoSCoS online system.

9. What if I submit wrong information in the return?
From 8 January 2024, you can use the ‘Revision/Update’ facility on FoSCoS to correct mistakes.

10. Do I need to file a nil return if I had no sales?
Yes, eligible FBOs must file even if no transactions occurred.

Accuracy & Compliance

11. Why is FSSAI scrutinising annual returns more closely now?
Due to increasing discrepancies, false declarations, and incomplete data in past returns.

12. What are the common errors in annual returns?
Wrong product codes, misreported quantities, missing values, and incorrect licence details.

13. How can I ensure accuracy in my return?
Cross-check data from invoices, stock registers, and production logs before submission.

14. Will FSSAI verify all returns?
Yes, licensing authorities are now directed to strictly scrutinise all returns within their jurisdictions.

15. Does the revision facility remove penalties?
If errors are corrected before scrutiny, penalties may be avoided for genuine mistakes.

Penalties & Legal Provisions

16. What law governs penalties for wrong annual returns?
Section 61 of the FSS Act, 2006 penalises false or misleading information.

17. What is the penalty amount for false declarations?
Up to ₹10 lakh for furnishing false or misleading information.

18. Are late filings penalised?
Yes, late fees may be imposed, and repeated non-compliance can lead to licence suspension.

19. Can my licence be cancelled for wrong returns?
Yes, deliberate falsification or repeated violations can lead to suspension or cancellation.

20. Are there separate penalties for non-filing?
Yes, non-filing is a separate offence and can attract action under FSSAI enforcement provisions.

Revision & Correction

21. How do I revise my annual return?
Log in to FoSCoS, select the revision option, edit the incorrect fields, and re-submit.

22. Is there a time limit for revising returns?
FSSAI recommends corrections be made as soon as errors are identified.

23. Can I revise after scrutiny has started?
You may still request revision, but penalties may apply if non-compliance is detected first.

24. Does revision require approval?
Yes, the updated return must be accepted by the licensing authority.

25. Will revised returns show the original submission date?
Yes, FoSCoS maintains a record of original and revised submissions.

Practical Compliance Tips

26. Should I keep a copy of my annual return?
Yes, retain a PDF or printout along with proof of submission.

27. How long should I keep supporting records?
At least three years for audit and inspection purposes.

28. Can an authorised representative file my return?
Yes, provided they have valid login access and authorisation.

29. What details should be checked before submission?
Product categories, licence number, manufacturing quantities, and value data.

30. How do I track my filing status?
FoSCoS provides status updates in your account dashboard.

Special Cases

31. Do importers have different annual return requirements?
Yes, they must include details of imported products and source countries.

32. Are exporters exempt from filing?
No, exporters must file returns specifying export destinations and quantities.

33. Do seasonal manufacturers need to file?
Yes, they must file for the period they were operational.

34. Is filing required for multiple licences?
Yes, a separate return is required for each licence.

35. Can my CA or consultant file the return for me?
Yes, as long as the details are accurate and you authorise them.

Inspection & Enforcement

36. Can FSSAI conduct inspections based on return data?
Yes, discrepancies can trigger on-site inspections.

37. Will FSSAI share return data with other authorities?
It may be shared with state food safety departments and other regulatory agencies.

38. What happens if I don’t respond to a discrepancy notice?
Non-response can escalate to penalties or licence suspension.

39. Are there online help resources for filing?
Yes, FoSCoS offers a User Manual and FAQs.

40. Can FSSAI reject my return?
Yes, if found incomplete or inaccurate, you may be required to refile.

Future & Best Practices

41. Will FSSAI automate scrutiny using AI?
It is exploring AI-driven compliance checks for faster verification.

42. Can I get alerts for upcoming deadlines?
Yes, FoSCoS sends automated email/SMS reminders.

43. Will annual returns be integrated with GST data?
Possible in future for cross-verification of sales figures.

44. Should I hire a compliance consultant for filing?
Advisable for complex operations or multiple licences.

45. Does filing early help?
Yes, it gives time for corrections if discrepancies are detected.

Estabizz Advisory

46. How can Estabizz help with FSSAI returns?
We offer audit, filing, and revision assistance to ensure accurate compliance.

47. Do you assist in FoSCoS account setup?
Yes, we handle registration, licence management, and filing.

48. Can Estabizz help in responding to FSSAI notices?
Yes, we draft responses and handle follow-ups with authorities.

49. Do you offer training for in-house compliance teams?
Yes, including workshops on FSSAI regulations and filing accuracy.

50. How to contact Estabizz for annual return support?
Visit www.estabizz.com or call our compliance team for guidance.

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Disclaimer

Disclaimer: This article is prepared by Estabizz Fintech Private Limited for informational purposes only. It is based on regulatory orders issued by the Food Safety and Standards Authority of India (FSSAI) as of July 2025. It does not constitute legal advice. Businesses should consult compliance professionals for tailored guidance.