"The way FM handled it is shameful": Tamil Nadu CM Stalin lashes out at Sitharaman after row over hotelier's GST quip

Chennai (Tamil Nadu) [India], September 14 : Tamil Nadu Chief Minister MK Stalin criticised Nirmala Sitharaman over a row triggered after the owner of a restaurant chain in Coimbatore reportedly apologised to the Union Finance Minister for his remarks on Goods and Services Tax stating that the BJP leader handled the situation in a "shameful manner."
At an event in Coimbatore attended by Sitharaman, the owner of Sri Annapoorna restaurant had in a jocular way referred to the varying GST rates levied on food items. "Madam, a bun doesn't attract GST, but when cream is applied to make it a cream bun, it attracts 12 per cent GST. Customers now say, 'You bring the bun and cream separately, and I'll make the cream bun,'" Srinivasan told the minister evoking laughter from the crowd.
The hotelier, also attempting to inject humour in his remarks referred to how even the hotel's computer system struggles to calculate the various tax rates when families order a variety of items and urged the Union Finance Minister to simplify the GST structure for food, suggesting a uniform rate for all items.
A purported video posted by the BJP's Tamil Nadu unit, and which has gone viral on social media, in which the restaurant chain owner is seen apologising to Sitharaman for his remarks drew criticism from the ruling DMK and the Congress party.
"The way the Union minister handled it is a matter of shame because he made fair demands on GST," Tamil Nadu Chief Minister MK Stalin said today on the remarks made by the hotelier.
Dravida Munnetra Kazhagam (DMK) spokesperson TKS Elangovan said that the government is not willing to listen to people's voices.
"As far as the Annapoorna issue is concerned, the owner of Annapoorna hotels only said what the people thought. It is the people's voice because he is not paying any tax, he is collecting tax from the people and paying. So, whatever the people feel, the government should listen... But this government is not willing to listen to people's voices. They threatened him and he was pressurised to seek a pardon," Elangovan told ANI on Saturday.
Lok Sabha Leader of Opposition (LoP) and Congress leader Rahul Gandhi on Friday cited the interaction to lash out at the central government over GST and said that a simplified GST with a single tax rate would solve the problems of lakhs of businesses.
"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," Rahul Gandhi posted on X.
The post added, "Our small business owners have already endured the blows of demonetization, an inaccessible banking system, tax extortion and a disastrous GST. 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."
Earlier, Congress President Mallikarjun Kharge also slammed the government and alleged the "disgraceful humiliation" of the Annapoorna restaurant owner shows the BJP's "arrogance of power."
Taking to his social media platform X, Mallikarjun Kharge wrote, "'Tax Terror' for Poor & Middle Class, while 'Tax Cuts' for Modi ji's Crony Friends! The disgraceful humiliation of a small businessman, the owner of Sree Annapoorna restaurant in Coimbatore by the Finance Minister and the BJP, smacks of arrogance of power. She has been a repeated offender in such public interactions. The owner asked a genuine question about Modi Govt's flawed GST and was first met with a condescending laugh by the FM and later forced to apologise to her on camera."
Stressing the need for a "simple, uniform, moderate and rational GST on essential items", Kharge said that MSMEs and small business owners are suffering from the "financial policies" of the central government.
"MSMEs and small business owners are suffering the brunt of the Modi Govt's repeated financial assaults in the form of a flawed GST and demonetisation. The BJP is only committed to benefit Modi ji's large crony friends! From Day 1, the Congress party is saying that we need a Simple, Uniform, Moderate and Rational GST on essential items. In our 2024 Manifesto, we said, "Congress will replace the GST laws enacted by the BJP/NDA government with GST 2.0. The new GST regime will be based on the universally accepted principle that GST shall be a single, moderate rate (with a few exceptions) that will not burden the poor. The Congress party is strongly committed to this. BJP's 'Loot Small Owners and Shoot the Messenger' policy spells a disaster for the Nation's economy!" he added.
Meanwhile, BJP leader K Annamalai apologised on behalf of the BJP's Tamil Nadu unit for making the conversation between the restaurant owner and the Finance Minister public.
"On behalf of @BJP4TamilNadu , 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," he said on X.
"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, "Annamalai's post on X read.