'Red Tape Killed My B2C Business': Reddit User Scrutinises India's Export Policies

A Reddit user, who identifies as a small entrepreneur from a village in India, drew the internet's attention for his emotional post detailing his struggles with India’s export bureaucracy.

Sharing his experience under the title “Why you should not try exporting from India,” the user, who goes by the name Gumnam Udyami, described how red tape and administrative hurdles crippled his once-promising B2C export venture.

Have a look at the entire post here:

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'Red Tape Will Kill You'

In his post, the Reddit user claimed that he, along with his small team of three people built a successful international brand, processing 300–400 orders a day. However, things took a turn when they tried to export these products abroad.

“My advice for Indians—do NOT export business from India—esp. B2C export as the red tape will kill you. All the talk of ease of doing business is just talk and no walk," he wrote.

The user also detailed how even minor requirements became roadblocks, such as acquiring an International Electrotechnical Commission (IEC) certificate, registering on ICEGATE, securing an AD code, and managing post-export documentation like the CSB-5 forms. He added that the situation worsened when the business had to pay GST twice for a shipment that was rejected by a customer and later returned.

“So here’s the thing, if you export and it has to be returned due to some reason, you need to pay GST for the export leg and also on the return… even on shipping cost,” he further added.

'Compliance Burden Too High for Small Exporters'

As per the user, for him, the biggest blow came in 2024, when integration between customs, GST, and RBI systems led to a bank notice. The user was informed that 50 lakh worth of open shipping bills had to be closed at a cost of Rs 400 per bill.

“That is 16% of my turnover (not profit) as RBI compliance fees!” he said, adding that the company could not afford the clerical burden or penalties, eventually freezing their account.

“We have not claimed the ITC back from GST… we honestly don’t have the funds, people or stamina to deal with one more bureaucratic nightmare,” he wrote.

Despite emailing officials including the RBI and the Office of Commerce Minister Piyush Goyal, the user claimed that he received no response.

He concluded his post by saying, “Do I run a business or do I work on compliance? So much for encouraging eCommerce exports from India. Hogwash.”

Social Media Users React

The Reddit post drew a significant response on social media. Some comments ranged from anger at officials to practical advice. One user alleged, “IAS and IRS officers… squeeze you like lemon and take a ton of bribes.”

Another offered their empathy and wrote, “Hopefully this becomes a big issue where the government cannot ignore it.”

A third user pointed out, “You don’t need to pay GST on exports… you can export under a letter of undertaking,” highlighting the possible workarounds.