Quick Summary
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!"
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FAQ :
The hotelier joked that a bun alone doesn't attract GST, but a cream bun does, leading customers to ask for the bun and cream separately to avoid the tax.
He used this example to illustrate the confusing and inconsistent GST rates on food items, which perplexes customers and employees and complicates business operations.
He appealed for a standard GST rate for all food products to reduce pressure on businesses and improve operational efficiency.
She acknowledged the humour but assured the hotelier that the GST Council is concerned about these issues and is actively working to simplify the GST system for entrepreneurs.
Yes, his comments went viral and sparked discussions about GST issues, particularly for SMEs. There was also speculation about whether he was pressured to apologise.
The Finance Minister also highlighted government efforts to create a business-friendly environment, including removing outdated laws and resolving pending complaints.
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