One GST Registration, Two Bribes, and Three Slaps to Meritocracy: Indian Redditor recounts Corruption Woes in Department
OP’s woes were echoed by others who claimed that they have been asked for registration “fees” ranging ₹3,000 from ₹60,000 by departmental officers.
India’s promise of “ease of doing business” through digital governance, though launched with the intent to increase accountability and accessibility, is slowly morphing into the very same monster it sought to destroy. A recent post in the subreddit r/StartUpIndia, tells the all-too-familiar story of an aspiring business owner’s first encounter with the ground reality of the Goods and Services Tax (GST) registration process
GST registration is the gateway for businesses to legally operate under India’s unified indirect tax system. Any business whose turnover crosses the prescribed threshold, or which intends to claim input tax credit, is required by law to register under GST.
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The registration should have been a textbook example of digital simplicity - submit documents online, wait for verification, and hit the ground running, but instead is many a time, less a model of efficiency and much more an example of institutionalized extortion in many cases.
The recount follows the applicant, armed with all proper paperwork and expectations of a fair system who soon found that procedure has its price. After submitting his application, a GST officer contacted him not to clarify a document or offer help, but to lay out the ground rules for actually getting the registration.
A super-educated, accomplished achiever who probably beat lakhs of applicants to occupy his governmental position, drawing in a stable salary and perks, wasted no time in letting OP know that a bribe was necessary if the registration was to move forward.
“If you pay, the approval will be instant and won’t raise any objections.” The field visit for verification would be carried out by another officer, with another hand to fill, another bribe to pay and another “service” rendered.
“Corruption-as-a-Service” Model
This wasn’t the desperate hustle of an underpaid clerk, but a transaction involving someone who knows the scales are forever tipped in his favor. The redditor further clarified that the events did not take place in some casual remote area, but in the very national capital of India, likening the process to subscribing to a “corruption-as-a-service” model.
Separated by Borders, United by Bribes
If this were an isolated episode, perhaps it could be dismissed as bad luck. Instead, the thread lit up with responses echoing similar experiences from redditors across India.
Several members of the business community recounted their own tales: registration “fees” of ₹3,000 to ₹10,000 are now routine, while others are told to expect bribes at multiple stages, sometimes facing new demands even after paying the first. One entrepreneur described being asked for a staggering ₹60,000 to make a “problem” go away, until a complaint to higher officials miraculously resolved the issue without payment.
Government guidelines push for minimal documentation and limited physical inspections, urging officers to avoid unnecessary demands. In practice, these directives are routinely ignored. Some officers invent technicalities, request irrelevant photos, or simply stall applications until their quoted fee is paid.
A recent incident from Punjab involves an applicant who received a GST notice (Form GST REG-03) directing him to upload not just proof of business premises, but also photographs of the site from every angle - inside, outside, with signboard, and even adjacent shops.
This demand directly contradicted the CBIC’s own Instruction No. 03/2025-GST, which specifically bars officers from seeking such irrelevant documentation at the registration stage. The applicant, echoing the frustration of many small business owners, condemned the request as nothing short of harassment and a clear violation of established guidelines.
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While the veracity of the concerns raised by the redditor remains grey owing to reddit’s anonymous nature of posting, one doesn’t really have to look far and wide to know the reality around them.
What to do if you Encounter Such A Situation?
For registrants who encounter corrupt GST officers or face unreasonable demands, there are concrete steps put in place by the government. Complaints about bribery or procedural harassment can be filed through the CBIC’s CPGRAMS portal, the grievance section of the GST portal, or directly with the jurisdictional GST Commissionerate.
Applicants are encouraged to document and submit all evidence, including copies of notices or communication, to strengthen their case and prompt action against errant officials.
Fingers crossed for a better, accountable and responsible tomorrow.
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