During an event in Coimbatore, a hotelier light-heartedly explained the complexities of India's GST system to Finance Minister Nirmala Sitharaman. He humorously illustrated how a bun without cream is GST-free, but a cream bun attracts 12% GST, leading customers to request separate components. This quip highlighted the broader issue of inconsistent GST rates on food items, causing confusion for businesses and customers alike. The hotelier appealed for a standardised GST rate to simplify operations, a sentiment echoed by others present, and received assurance from the Finance Minister that the GST Council is working on improving the system.
In a recent interaction held in Coimbatore with the Union Finance Minister Nirmala Sitharaman, a hotelier tried to make her understand the complexity of GST in India comically. In front of a lively audience, he pointed out the inconsistent tax rates on food items, humorously stating, "Madam, a bun d
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FAQ :
The hotelier joked that a bun alone doesn't attract GST, but a cream bun does, leading customers to ask for the bun and cream separately to avoid the tax.
He used this example to illustrate the confusing and inconsistent GST rates on food items, which perplexes customers and employees and complicates business operations.
He appealed for a standard GST rate for all food products to reduce pressure on businesses and improve operational efficiency.
She acknowledged the humour but assured the hotelier that the GST Council is concerned about these issues and is actively working to simplify the GST system for entrepreneurs.
Yes, his comments went viral and sparked discussions about GST issues, particularly for SMEs. There was also speculation about whether he was pressured to apologise.
The Finance Minister also highlighted government efforts to create a business-friendly environment, including removing outdated laws and resolving pending complaints.