Why 18% GST On Cream Buns, And No GST On Plain Buns…: Know What Chennai Hotelier Asked Sitharaman

Chennai: A video of the Managing Director (MD) of Tamil Nadu’s popular Annapoorna Hotel apologising to Finance Minister Nirmala Sitharaman for his questions on the Goods and Services Tax (GST) sparked controversy and drew flak from social media users.

The video was released on X by the Tamil Nadu BJP and later removed following huge criticism. It showed Srinivasan—the hotel’s MP and the honorary president of the Tamil Nadu Hotels Association—apologising to the minister in the presence of Coimbatore South BJP MLA Vanathi Srinivasan in a room. “Please pardon me for my comments. I do not belong to any political party,” Srinivasan was heard saying.

But, what had the hotel owner asked? Well, he questioned the GST on savouries being more than that of sweets. “Why is there 5% GST on sweets but 12% on savouries, and 18% on cream buns, while buns alone have no GST?” he had asked as he highlighted GST inconsistencies during a recent meeting between Finance Minister Nirmala Sitharaman and hoteliers in Coimbatore.

Srinivasan had also raised concerns about the challenges faced by restaurateurs due to varying GST rates on food items. Sparking laughter, he had stated that since there was 18% GST on cream-filled buns, but no GST on buns, customers were saying ‘Just give me the bun; I will add the cream and jam myself.’

He had also stated that the Ministry had imposed 5% GST on sweets and 12% on namkeen because people in the North consumed more sweets. But, in Tamil Nadu, sweets, namkeen, and coffee are often consumed together, he had stated while requesting uniform GST rates for all items.

Opposition reacts: ‘Arrogance and outright disrespect’

The video of the businessman’s apology irked both DMK and Congress parties. Leader of Opposition in the Lok Sabha, Rahul Gandhi, had slammed the government. When ‘fragile egos’ of those in power were hurt, it seemed humiliation was what they would deliver, Gandhi had stated.

In a post on X, Gandhi also mentioned that the owner of a small business, like the Annapoorna restaurant in Coimbatore, asked public servants for a simplified GST regime, but his request was 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,” he cited further, adding that if the 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.

Reacting to the video, DMK MP Kanimozhi had quoted a verse of Thirukural that states: ‘Greatness humbly bends, but littleness always, Spreads out its plumes, and loads itself with praise’. She further stated that the Centre and the Union ministers should not hurt the self-esteem of the southern state.