Video of TN businessman’s apology to Sitharaman prompts Annamalai to say sorry

Union finance minister Nirmala Sitharaman

A video of a Coimbatore-based businessman apologising to the Union finance minister Nirmala Sitharaman has gone viral. In the video, hotelier D Srinivasan seeks forgiveness from Finance Minister Nirmala and clarifies that he had no political affiliations.

Earlier, Srinivasan, chairman of the well-known Sri Annapoorna Hotel, said the GST regime is too complex, and it is getting difficult even for tax officers to calculate input credits.

“There are different GST rates for sweets and namkeens. No GST for plain bread but if served with cream, GST is applicable. For a family that dines in a restaurant, there are different GST rates. Even the computer is confused at these rates,” he said during a public interaction of the local business community in Coimbatore with Sitharaman.

Srinivasan, who is also the president of the Coimbatore District Hoteliers Association, further explained the dilemma faced by businesses. He said GST on sweets is 5 percent and 12 percent on namkeens. However, plain bun, which attracts zero percent tax on its own, is charged at 18 percent when cream is added, making the calculation for input credit tough.

Opposition parties seized on the video of Srinivasan's apology, shared by a state BJP leader, to accuse the BJP of 'arrogance and tax terrorism'.

Soon after, the state BJP president K Annamalai apologised for sharing the private conversation between Sitharaman and Srinivasan.

“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.

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,” the BJP leader said in a post on X.

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
K.Annamalai (@annamalai_k) September 13, 2024

Rahul Gandhi said small business owners’ requests are met with “arrogance and outright disrespect” by the Central government.

“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. But when the fragile egos of those in power are hurt, it seems humiliation is exactly what they’ll deliver,” the Leader of Opposition said in a tweet on X.

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 Rahul Gandhi (@RahulGandhi) September 13, 2024

Congress president Mallikarjun Kharge, too, pounced on the issue and attacked the finance minister and the saffron party.

“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,” Kharge said.