
Congress leader and Leader of Opposition in the Lok Sabha, Rahul Gandhi came down hard on Prime Minister Narendra Modi on the issue of GST for small businesses. Gandhi, condemning the government's handling of small business concerns, particularly in response to a Coimbatore hotelier's plea for GST reform, criticised Prime Minister Modi for showing indifference towards small business owners while favouring billionaires.
His remarks followed a viral exchange between Finance Minister Nirmala Sitharaman and D. Srinivasan, a prominent Coimbatore hotelier, who had humorously pointed out the inconsistencies in the GST system during a recent forum.
"When the owner of a small business, like Annapoorna restaurant in Coimbatore, asks our public servants for a simplified GST regime, his request is met with arrogance and outright disrespect," Gandhi tweeted. He went on to accuse the government of rolling out the red carpet for billionaires while small businesses endure hardships such as demonetisation, an inaccessible banking system, and a flawed GST.
Gandhi's criticism comes after Srinivasan, president of the Coimbatore District Hoteliers Association and a prominent hotelier in the city, raised concerns during a public meeting with Sitharaman, humorously pointing out the confusion caused by multiple GST rates on food items.
"A bun doesn't attract GST, but when cream is applied to make it a cream bun, it attracts 12% GST," Srinivasan quipped, drawing laughter from the audience. He went on to suggest a uniform GST rate for all food items to ease the burden on small businesses like his.
Srinivasan’s remarks, though made in jest, struck a chord with many, highlighting the struggles that small business owners face under the current GST system. Finance Minister Sitharaman responded to his concerns later, acknowledging the complexity of the GST regime but also noting that such remarks often fuel anti-GST sentiments. "We are taking all the necessary steps to ensure GST is smooth and not a burden for the people," she said at a subsequent press conference.
However, a video of Srinivasan's meeting with Sitharaman, shared by the BJP’s Tamil Nadu Social Media Cell, sparked speculation that the hotelier had been pressured into purportedly apologizing for his comments.
Tamil Nadu BJP President Annamalai later issued an apology for the video being made public, calling Srinivasan a "pillar" of the state's business community. "I sincerely apologize for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM," Annamalai stated.
The incident has sparked a wider debate on the treatment of small business owners and the GST system, with opposition leaders rallying behind Srinivasan. AIADMK spokesperson Kovai Sathiyan questioned whether the hotelier had been forced to apologise, calling it a sign that authorities are too afraid to face criticism. Meanwhile, Rashtriya Janata Dal (RJD) leader Tejashwi Yadav expressed concern over the increasing pressure on small businesses under the current regime.
"If this arrogant government would listen to the people, they would understand that a simplified GST with a single tax rate would solve the problems of lakhs of businesses," Gandhi added in his tweet.
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today