Congress leader and the Leader of Opposition in the Lok Sabha, Rahul Gandhi, strongly criticized Prime Minister Narendra Modi regarding the handling of GST for small businesses. Gandhi expressed his disapproval of the government’s approach, particularly in light of a recent appeal by a hotelier from Coimbatore, who called for reforms in the GST system. Gandhi accused the Prime Minister of neglecting the needs of small business owners while prioritizing billionaires.
The criticism came after Srinivasan, the president of the Coimbatore District Hoteliers Association, voiced his concerns during a public interaction with Finance Minister Nirmala Sitharaman. He humorously pointed out the confusion caused by the varied GST rates on food items, providing an example that resonated with many.
“A plain bun isn’t taxed under GST, but when cream is added to make it a cream bun, a 12% GST applies,” Srinivasan joked, drawing laughter from the audience. He then suggested that a uniform GST rate for all food items would ease the burden on small businesses, like his.
While Srinivasan’s comments were lighthearted, they touched on a significant issue for small business owners facing difficulties with the current GST framework. Sitharaman responded by acknowledging the complexities of the system but stressed that such remarks often amplify negative sentiment towards GST. “We are working to ensure that GST functions smoothly and isn’t a burden on the public,” she clarified in a later press briefing.
However, a video of Srinivasan’s interaction with Sitharaman, shared by the BJP’s Tamil Nadu Social Media Cell, led to speculation that the hotelier had been coerced into apologizing for his remarks.
Tamil Nadu BJP President Annamalai later expressed regret over the incident, apologizing for the release of the video. He praised Srinivasan as a key figure in the state’s business community, stating, “I deeply apologize for the actions of our members who shared a private exchange between a respected businessman and the Hon. Finance Minister.”
The situation has ignited a larger conversation about the treatment of small business owners under the GST regime. Opposition leaders have voiced their support for Srinivasan. AIADMK spokesperson Kovai Sathiyan questioned whether the hotelier had been forced into an apology, suggesting it reflected the government’s inability to handle criticism. Similarly, Rashtriya Janata Dal (RJD) leader Tejashwi Yadav expressed concern about the growing pressure on small businesses in the current political climate.
In a tweet, Rahul Gandhi remarked, “If this indifferent government paid attention to the concerns of the people, they would realize that a streamlined GST with a unified tax rate could address the challenges faced by thousands of small businesses.”
