In a recent interaction held in Coimbatore with the Union Finance Minister Nirmala Sitharaman, a hotelier tried to make her understand the complexity of GST in India comically. In front of a lively audience, he pointed out the inconsistent tax rates on food items, humorously stating, "Madam, a bun doesn't attract GST, but once the cream is applied, it becomes a cream bun, which then attracts 12% GST. Customers now say, 'You bring the bun and cream separately, and I'll make the cream bun myself!"
The quip, which drew laughter from the crowd, was part of a broader plea by the President of the Coimbatore District Hoteliers Association for simplifying GST rates on food. The hotelier added that the customers as well as the employees get perplexed by many GST rates for various food items and that even their computer system takes a lot of time to work out the taxes when the families order some dishes together. He appealed to the Finance Minister for a standard GST rate for food products so that the pressure can be removed from companies and operations can become better.
Adding to the humour, Coimbatore South MLA sitting beside the Finance Minister said 'North of India eats more sweets' therefore sweets attract only 5% GST, while savouries have 12% GST. It showed humor and was well received by the audience but made people understand how much proprietors struggle with the current system of taxes.
In response, Sitharaman assured the hotelier and the attendees of the fact that the GST Council is also concerned with such issues. She said that she understood that the conversation was quite light-hearted but added that the government has been constantly trying to improve the GST system and make it easier for entrepreneurs. "These amusing talks are often fuel for those who are staunchly opposed to GST," she noted, adding that "pickle aunty" jokes aside, the Council is serious about refining the system to reduce the burden on businesses and taxpayers alike.
The comments made by this hotelier went viral and raised discussions on the issues of GST especially to SMEs. The controversy stirred by his comments came a day after a follow-up meeting with the finance minister where everybody wondered whether he was forced to apologize for his remarks. AIADMK spokesperson questioned whether the hotelier was forced into an apology, while also criticizing the state of local GST offices, suggesting that the tax system needs more fundamental improvements.
Beyond the humor, the meeting also discussed some of the real concerns that affect the industrial growth of Coimbatore. Sitharaman highlighted the government's efforts to create a more business-friendly environment, such as the removal of 1,500 outdated laws and the resolution of 40,000 pending complaints. She praised the efforts of local industry bodies like Codissia for their role in supporting initiatives such as the Atal Innovation Mission and the Defense Corridor, both of which are key to the region's economic development.
The event was filled with humour and jokes as well as serious debates on the issues that businesses face under the current GST statutes with an optimism of change in policies in the near future.
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