COIMBATORE: Two videos which surfaced on social media within a gap of 24 hours in Tamil Nadu have triggered a political row, with the opposition seeking to put BJP on the back foot over GST.
In the first, hotelier D Srinivasan, owner of Sree Annapurna chain of hotels, is seen complaining to FM Nirmala Sitharaman about different GST rates for various food items served in restaurants. The next video, circulated within the next 24 hours, showed him apologising to her.
The issue snowballed into a nationwide debate on GST and sparked an online row. Congress, DMK, AIADMK and Shiv Sena (UBT) slammed BJP for “forcing” the hotelier to apologise for raising genuine concerns about GST. Sources close to the businessman said he had apologised to the FM of his own volition.
TN BJP president K Annamalai, who is in London, stepped in and spoke over phone to Srinivasan and apologised for the “unintended breach of privacy” caused by the video. He said Srinivasan was a pillar of TN’s business community, contributing significantly to both state and national economic growth, and requested all to put the matter to rest.
It all started on Wednesday, when Srinivasan, who is also the honorary president of Tamil Nadu Hoteliers Association, told the FM at an interactive session with MSMEs that multiple GST rates for food items were resulting in operational difficulties. Laced with humour, he said a plain bun attracted no GST, but when it was filled with cream, it faced an 18% levy. “Customers say you bring bun and cream separately, we will prepare cream bun,” he said, leaving the hall in splits. He pointed out that sweets were taxed at 5%, while savouries attracted 12%. Some items get input tax credit while some don’t,” he had said.
“Please make GST uniform for all food items. Even the computer struggles. We are unable to run the hotel madam,” he had said.
The FM did not respond to the remarks during the meeting but on Thursday, she defended the rate regime. “How can a value-added product and a raw product be taxed uniformly?” she had said at a press conference , adding that the rates were fixed by the GST Council, which comprised representatives from all states. “We are taking all efforts to simplify GST and reduce burden on people,” Sitaraman had said.
Soon after her press conference, the second video surfaced on social media through X handles of BJP members where Srinivasan was seen apologising to the FM. “Forgive me. I do not belong to any political party,” he was heard telling the FM, triggering protest from opposition parties.
“When the owner of a small business, like Annapurna restaurant in Coimbatore, asks our public servants for a simplified GST regime, his request is met with arrogance and outright disrespect,” Rahul Gandhi said in a post on X. “But the PM rolls out the red carpet for billionaire friend seeking to bend rules,” he added.
“Our small business owners have already endured the blows of demonetisation, an inaccessible banking system, tax extortion and a disastrous GST. The last thing they deserve is further humiliation,” the leader of opposition in Lok Sabha posted.
DMK’s Kanimozhi said the Union govt and Union ministers should stop testing the self-respect of Tamils.
Shiv Sena (UBT)’s Aaditya Thackeray tweeted, “Had BJP been voted with majority, this person would have faced a bulldozer, and yet even without majority, they indulge in such arrogant behaviour. Shouldn’t arrogant ministers be sacked?”
BJP national women’s wing president Vanathi Srinivasan said the hotel owner was not forced to apologise by BJP. Nevertheless, the issue refused to die down as BJP was accused of releasing Srinivasan’s video apologising in a bid to “silence other critics”.