In a plea for GST reform, Coimbatore hotelier D. Srinivasan took a humorous dig at the varying GST rates on food items during a meeting with Finance Minister Nirmala Sitharaman in the city.
"Madam, a bun doesn't attract GST, but when cream is applied to make it a cream bun, it attracts 12% GST. Customers now say, 'You bring the bun and cream separately, and I'll make the cream bun,'" Srinivasan told the minister, drawing laughter from the audience.
Srinivasan, president of the Coimbatore District Hoteliers Association, further elaborated on the challenges hoteliers face due to the multiple GST rates on different food items.
He joked that even the hotel's computer system struggles to calculate the various tax rates when families order a variety of items. He urged the minister to simplify the GST structure for food, suggesting a uniform rate for all items.
The lighthearted conversation also involved Coimbatore South MLA Vanathi Srinivasan, who was sitting next to the Finance Minister.
Srinivasan humorously mentioned, "Vanathi amma comes for sweets and savouries and jokes that north of India eats more sweets, which is why sweets attract only 5% GST, while savouries are slapped with 12%."
"He's an elderly person with long-standing experience in business. He asked me a question during the meeting, but I didn’t respond at that moment. Through you, let me address it now. The GST Council is closely observing everything. These amusing talks are often fuel for those who are staunchly opposed to GST," Sitharaman later said at a presser.
"Look he questioned 'pickle aunty'. Look how everyone is laughing. Does she know anything. I'm not bothered. We are taking all the necessary steps to ensure GST is smooth and not a burden for the people. Every minister in the Council is working toward this goal."
A day after his comments went viral, Srinivasan met with Finance Minister Nirmala Sitharaman again, sparking speculation that he had been pressured to apologize for his quip. AIADMK spokesperson Kovai Sathiyan questioned, "Was he forced to apologize?" He further criticized the minister, saying, "The Finance Minister could have visited the GST office in Coimbatore, where there is nothing but a wooden bench for the tax payer."
"A common voice, represented by a hotelier, has reached the corridors of power, but the authorities are too scared to even face it," he added.
The meeting in Coimbatore also addressed broader issues related to industrial growth. Sitharaman highlighted the removal of 1,500 outdated laws and the cancellation of 40,000 complaints to create a favorable environment for business. She also noted the support Codissia has provided in driving government initiatives like the Atal Innovation Mission and the Defense Corridor in Coimbatore.