I had same experience with fedex for shipments from UP from last 2 weeks. My 3 shipments returned back to me and when i enquired the same i found that UP state govt updated their policy and now they need form 38 from us. This form 38 is to be generated by customer and since our customers are individual consumer they wont be having VAT Tin registration number and therefore, they can't use their online FORM 38 facilities and they will have to visit the Sales Tax office personally for generating the form 38.

For other states there are forms required  for road transportation but when we do Shipments by AIR facility, these forms are not being asked by shipping careers but  in UP they dont have Air Facilities therefor our shipments get transport by ROAD from New Delhi.

according to My personal experience, i dont think customer will do all these headache work and wont have time even to visit sales tax office. they would rather go to local shop and buy the needed products. 

Day by day all the state govt is creating issue for eCommerce business and these way i don't think that eCommerce business will survive. We already had problem with shipments to West Bengal, Jharkhand, Orrissa, MP and Assam for the same FORM issue, now UP will be one more trouble for us.