Union Finance Minister Nirmala Sitharaman
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Union Finance Minister Nirmala Sitharaman addresses the gathering during an event, in Coimbatore on Thursday (September 12). Photo: X/@nsitharamanoffc

Annapoorna Hotel owner's GST apology kicks up row; Rahul, Annamalai join issue

The last thing MSMEs deserve is further humiliation, said Rahul, after Annapoorna hotel owner apologised to FM for complaining about complex GST rates


When Srinivasan, the MD of the famous Annapoorna hotel in Tamil Nadu, ranted to Union finance minister Nirmala Sitharaman about the complexity of varying GST rates for similar snack items, little did he realise that he would get caught in a political crossfire involving the Leader of Opposition Rahul Gandhi and Tamil Nadu BJP head K Annamalai.

That’s what happened when Srinivasan complained to Sitharaman at a public event in Coimbatore about confusions that arise from GST rates applied differently for similar snack items. Now, according to reports, he has been forced to apologise to Sitharaman and that video has gone viral and triggered a controversy.

After the apology video, Rahul Gandhi too stepped in to attack the BJP government saying that request of a small business owner is being met with arrogance and outright disrespect. In a post on X, he said, “The last thing they deserve is further humiliation. But when the fragile egos of those in power are hurt, it seems humiliation is exactly what they’ll deliver. MSMEs have been asking for relief for years. 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."

Rahul said that 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.

“Yet, when a billionaire friend seeks to bend the rules, change the laws, or acquire national assets, Modi Ji rolls out the red carpet. Our small business owners have already endured the blows of demonetisation, an inaccessible banking system, tax extortion and a disastrous GST," added Rahul.

What Srinivasan said

What did Srinivasan have to apologise for?

In his apology video he is seen telling Sitharaman, “I do not belong to any party, please excuse me.” This video was shared by the Tamil Nadu BJP social media Cell convenor, Balaji MS.

The Tamil BJP unit shared the video of Annapoorna owner Srinivasan's apology to the finance minister

This apology and the complaint he had raised with the finance minister became a hot topic for discussion on social media. While some criticised him for apologising others praised him for his courage in speaking out.

At the public event, Srinivasan stood up to point out to Sitharaman that the lady seated next to her, BJP MLA Vanathy Srinivasan, is his regular customer and she always complained about the GST bill.

There are different GST rates for everything, he said. "For example: there is no GST on bun. If you put cream in it, GST becomes 18 per cent. Because of this, customers ask to give them bun and cream separately and they will apply cream on the bun themselves to save money." He further said people say that the FM has put 5 per cent GST on sweet and 12 per cent on namkeen because people eat a lot of sweets in the north.

"In Tamil Nadu, sweet, namkeen and coffee go together. Please charge uniform GST for these. The computer itself is getting stuck because of this GST confusion,” he said.

This video was widely shared by Opposition parties, including the DMK.

TN BJP chief Annamalai tweets

Meanwhile, BJP Tamil Nadu chief Annamalai too apologised for the incident. "I sincerely apologise for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM. I spoke with Thiru Srinivasan Avl, the esteemed owner of the Annapoorna chain of Restaurants, to express regret for this unintended breach of privacy," said Annamalai.

"Annapoorna Srinivasan Anna is a pillar of Tamil Nadu’s business community, contributing significantly to the state’s and nation’s economic growth. I request everyone to lay the matter to rest with due respect," urged Annamalai.

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