'Getting GST is a nightmare': Techie blasts India's red tape for entrepreneurs, questions complex RBI norms

Abhinav Upadhyay, a tech professional, has joined a growing chorus of entrepreneurs voicing frustration over India's regulatory environment for startups. Reacting to an entrepreneur Mahima Jalan's post about bribe demands and bureaucratic red tape, Upadhyay highlighted his own struggle with the system.

"This hits hard," he wrote on X. "I've struggled to make it on Substack because of all the crazy RBI regulations. So crazy that Stripe left India. Receiving money for any consulting gig directly in the bank requires explaining five people at the bank why that transaction happened."

He added, "Getting GST is a nightmare."

Upadhyay pointed out how things work differently abroad. "People from outside of India are always astonished. For them starting a Substack is as simple as entering their bank details and they are good to go. While here, you need an import export code, an Udyam registration, Aadhaar card KYC, and GST (optional).”

“What I fail to understand is — is India the only country struggling with money laundering, that it has such unique regulations?” he asked.

His comments came after Jalan shared her own experience with systemic obstacles. “My GST application was rejected, not due to any issue in paperwork, but because the officers expected an in-person visit, just so I could ‘settle’ things with them under the table,” she wrote.

Jalan also flagged the challenges with international payments under RBI rules, recounting how flagged transactions and blocked accounts often leave business owners fighting to access their own money.

“Yet the same ministers go on public platforms to say entrepreneurs aren't building real value,” Jalan said.

The discussion began after Commerce Minister Piyush Goyal's recent remarks at the Startup Maha Kumbh, where he took a jibe at Indian startups for focusing on food delivery and fantasy sports apps, while calling for greater ambition and more innovation in deep tech. Goyal later announced a helpline desk for startups to file complaints or suggestions, including reports of corruption.