The row that erupted after the BJP’s Tamil Nadu unit leaked a video of Sri Annapoorna restaurant owner Srinivasan apologising to Finance Minister Nirmala Sitharaman has triggered a significant political debate. The incident took place during a meeting between business owners and the Finance Minister in Coimbatore, where Srinivasan raised concerns about the confusing Goods and Services Tax (GST) structure applied to food items. His public remarks about GST complexity, while raising important issues faced by the hospitality industry, were met with unexpected consequences.
At the meeting, Srinivasan humorously pointed out inconsistencies in the taxation system, such as cream-filled buns being taxed at 18% while plain buns had no tax, and sweets being taxed at 5% compared to savouries taxed at 12%. He cited an example of customers jokingly asking to buy a plain bun so they could add cream and jam themselves to avoid paying higher taxes. His comments, which were well-received by the other business owners present and even elicited a smile from Sitharaman, highlighted the challenges faced by restaurateurs in adhering to the GST structure, which many feel is overly complicated and arbitrary.
While the meeting initially seemed productive, with Sitharaman assuring that she would consider the concerns raised by business owners, things took an unexpected turn when a private conversation between Srinivasan and the Finance Minister was leaked online by the BJP’s social media cell. In the leaked video, Srinivasan was seen apologising to Sitharaman, stating, "Please pardon me for my comments. I do not belong to any political party," in a tone that appeared to reflect regret or pressure. The presence of Coimbatore South MLA Vanathi Srinivasan during the apology added to the perception that Srinivasan may have been coerced into expressing contrition.
Once the video surfaced on social media, it quickly sparked outrage, with critics accusing the BJP of forcing the business owner to apologise for simply raising valid concerns about GST. The video was seen as emblematic of the BJP’s approach to dissent, where anyone who raises uncomfortable questions is allegedly silenced or humiliated. Opposition parties, including the Congress and the DMK, were quick to seize on the controversy, calling the BJP’s actions arrogant and disrespectful.
Congress leader Rahul Gandhi led the charge against the BJP, criticising the party for humiliating Srinivasan for daring to ask a legitimate question about GST. Gandhi took to social media to call for a simplified GST regime with a single tax rate, arguing that such a system would resolve the challenges faced by small and medium-sized businesses like Srinivasan’s. In a sharp rebuke, Gandhi contrasted the BJP’s treatment of small business owners with its alleged preferential treatment of billionaires, accusing Prime Minister Narendra Modi of rolling out the red carpet for his billionaire friends while ignoring the needs of everyday entrepreneurs.
The issue also gained traction among political commentators and the public, with many questioning the BJP’s decision to release the video in the first place. Political analyst Sumant C Raman was particularly vocal in his criticism, condemning the BJP for releasing what should have been a private conversation. Raman suggested that the video only served to humiliate a respected businessperson in Tamil Nadu, a state where the Annapoorna restaurant chain holds significant influence. He noted that this incident would likely not sit well with the people of the Kongu region, where Srinivasan’s business has a strong presence, and it could even impact the BJP’s standing in the state.
As the controversy grew, Tamil Nadu BJP chief K Annamalai was forced to issue a public apology. In a tweet, Annamalai expressed regret for the "unintended breach of privacy" and assured that he had personally spoken to Srinivasan to convey his apologies. He further praised Srinivasan as a key figure in Tamil Nadu’s business community, highlighting his contributions to the state’s economy and characterizing the leak as an unfortunate mistake by party functionaries. Annamalai’s apology, however, did little to quell the criticism, as opposition parties continued to use the incident to attack the government on broader issues related to GST and the BJP’s handling of dissent.
Beyond the immediate political ramifications, the incident has shed light on the ongoing struggles that many small businesses face under India’s GST regime. Introduced in 2017 with the promise of streamlining India’s complex tax system, GST has since been criticised by many for its multiple tax slabs, which range from 0% to 28%, depending on the goods or services in question. Business owners, particularly in sectors like hospitality, have voiced frustration over the difficulties they encounter in calculating and applying the correct GST rates. The confusion around different tax rates on similar products, such as the cream-filled buns mentioned by Srinivasan, has led to calls for simplifying the GST structure to make it more business-friendly.
This incident has once again highlighted the need for reform in the GST system, with opposition parties rallying around the cause of simplifying the tax regime. The controversy surrounding Srinivasan’s apology has provided them with fresh ammunition to attack the BJP’s handling of economic policy, especially in the run-up to state and national elections. Whether the BJP’s apology will be enough to defuse the situation or whether it will have lasting political consequences remains to be seen.
In the meantime, the debate over GST reform is likely to continue, with business owners across the country watching closely to see how the government responds to their concerns.
