Biggest Issue with GST in India | Business | Sarthak Ahuja

The most painful part of starting a business is not the company registration or LLP, or bank account...

It’s become taking a GST registration...

I mean today if you wish to register on e-commerce, quick commerce or deal with any big customer, even if you don’t cross a 20L revenue threshold, you need to get a GST registration.

And once you apply online, the GST department across states take almost 2 months in granting registration.

I’ve faced this issue myself, and a number of founders I work with have to face this too.

It’s insanely frustrating, takes a ton of follow up - all because even though the process is supposedly online, the officers will find ways to reject your application till you go meet them and grease some palms.

It’s all the more annoying if you grow a bit on e-commerce and require GST registrations across different states while placing your inventory in warehouses in different regions.

What the GST officers don’t realise is how much tax revenue the country misses out on by letting business owners not start their business for almost 2 months, just waiting for the GST registration.

The issue is not the GST on popcorn or second hand car - the issue is the sheer pain one feels while dealing with the tax administration.

No kidding. Ongoing pending registration since 25th Nov 2024.

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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

[K_India]

Someone finally spoke the truth.
It’s not just in business.
This whole online and going digital is just an eye wash. No file moves forward until you beg in the offices..

[rishirajjaingupta]

Corruption is the backbone of Indian bureaucracy 😅

[vishalpowale]

Close family frnd is Tax consultant. He tells me, every officer with power in GST office has a target for bribe collection by his higher ups, that goes all the way to the minister of that dept. The targets are so stringent that, come what may he has to give that much money to highers ups at stipulated time

[VivekSharmav]

In my case, the GST officers came to my home in the garb of verification and made random excuses. I told them in the face that if they were expecting something, it is a no from me. I also subtly pointed out to the CCTV camera in my living room which was recording everything. The fellas went back and approved.

[Paresaaan_aatma_]

Very common in India, govt officers are same in whole india..

[vaibhavshukla]

Earlier bribes were given to do few signatures on some papers... Now it's given to do just a few clicks on the mouse.

[manfromearth]

So this is the face of ease of doing business in India

[amithabv]

It used to be automatic when gst was introduced, without any human interaction. But then thousands of individuals started to register fake GST numbers in the name of daily wagers to claim fake input credit. It was then moved back to this system .

[mufaddalpanwala]

Not only GST.. most of the Govt departments are working on same way…they dont allow the work to flow smoothly until their pockets are filled

[afrozazim]

Seeing so many comments of instances where people had to pay bribes to get their genuine work done is really sad and disheartening.

[jinenjain]

Absolutely Bang on !
1. Streamline registration process making faceless as already GPS photo is uploaded this will reduce bribe and also processing time
2. Adding additional place is a headache
3. Have list prescribed in rules and do not allow officer to prescribe nonsensical details. Absolutely shitty details are been asked.

[sagarmerchant]

Thanks for talking about this. This issue needs a lot more attention. Hope to hear more on this topic.

[SnehaSandy-sleo]

Instead of asking Indians to work for more than 70 hours a week. Our Govt offices need to step up and start being productive.

[rudrarishi]

It's everywhere, passport, Solar rooftop, Solar Agriculture Pumpset .

Imagine

[hiteshujjainwal]

Thank you for raising this, I thought I was the only one

[BRV-]

This is the what we call perception or in the internet terms "POV". I used to have the same notion when i was part of the public. But once i started working in GST department, that's where the perspective changed. It's easy to blame govt. office or stamp terms like "greasing the palms", but once you are on the other side, you get to know that the general public is not as naive as they give themselves out.
Documents like - Property registration, Electricity bills, Lease papers and Map layouts are either not uploaded or are straight out forged to get registration. We inform the person about the same and then they cause delays in uploading because they are not in posession of real ones at the first place. Many a times, the new registrations give out adresses which are either residential or *don't even exist* in order to get FAKE ITC benefits.
If your documentation is upto date, no GST Officer (atleast in my UT - J&K) would stop from giving you registeration.
As a common man, It's easier to throw blames but not so good when you are asked to take responsibility .

[MarcSpctr]

The biggest issue with GST is that IT EXISTS, while serving us poor services with the money gathered.

[Infinity__]

This happened with me. Sometimes its very frustrating previously I used to think stay in India and contribute its growth but now I am thinking to move some developed country. Here is no hope.

[rahulagarwal]

I agree. We also face the same issue for 15-20 days till the time when we meet the officer.

[simbhaartwood]

Exactly what I had I go through. Corruption at every level has only gotten worse than in the past ....