Selling Home-Cooked Food on Swiggy and Zomato: Navigating GST and FSSAI Requirements

Selling Home-Cooked Food on Swiggy and Zomato: Navigating GST and FSSAI Requirements

In the digital age, the avenue to sell home-cooked food products has become incredibly accessible via platforms like Swiggy and Zomato. However, understanding the legal and regulatory framework to ensure compliance with GST (Goods and Services Tax) and FSSAI (Food Safety and Standards Authority of India) is crucial. This article aims to provide a comprehensive guide to help home food entrepreneurs navigate these requirements effectively.

Introduction to FSSAI and GST

The Food Safety and Standards Authority of India (FSSAI) and the Goods and Services Tax (GST) are two critical regulatory frameworks in India that impact the food industry, including online food delivery platforms. While FSSAI focuses on the safety and standards of food products, GST ensures that businesses pay the appropriate tax on their goods and services. However, it is important to note that for online sales without a physical shop license, certain conditions apply.

FSSAI Registration vs. Licensing

Every food business operator (FBO) involved in manufacturing, processing, sale of food products, and storage or distribution must compulsorily obtain FSSAI Registration or a License. It is crucial to understand the difference between FSSAI Registration and Licensing. The type of registration or license required depends on the nature and size of the business. For smaller scale operations or those that may not meet the criteria for a license, FSSAI Registration is often sufficient. However, if the business involves a commercial scale or if the products are manufactured for sale, an FSSAI License is necessary. Visitors can check out more detailed information on FSSAI at [FSSAI official website]().

Selling from Home without GST and Shop License

If you are operating a home-based food business, it is possible to sell your home-cooked food through platforms like Swiggy and Zomato, and there is no problem with this. However, when the annual turnover from such sales exceeds a prescribed limit, specific taxes and registration requirements come into play.

According to the GST Act, 2017, if your annual turnover from such sales exceeds Rs. 40 lakhs, you are required to compulsorily obtain GST registration. Conversely, if your turnover does not exceed this limit, you are not liable to register and collect GST on transactions conducted through these e-commerce platforms.

What If I Don't Register for GST?

For businesses that do not cross the annual turnover threshold of Rs. 20 lakhs, there is no obligation to register for GST. Consequently, GST would not be applicable on transactions conducted through e-commerce operators. This means that even without GST registration, you can still sell your products through platforms like Swiggy and Zomato legally as long as your turnover remains within the exempted limit.

Conclusion: A Legal and Safe Business Operation

Selling home-cooked food on platforms like Swiggy and Zomato offers immense potential for home food entrepreneurs. By understanding and complying with the necessary regulations and requirements set by FSSAI and GST, you can ensure a legally and safely run business. For more detailed information, you can visit the official websites or seek professional advice.

Resources

- [Swiggy Official Website]() - [Zomato Official Website]() - [FSSAI Official Website]() - [GST Act, 2017](_and_Services_Tax_Act,_2017)