• October 7, 2024

Tamil Nadu Hotels Association President Apologizes to Finance Minister Over GST Remarks in Private Meeting

 

According to the News Minute, A video showing Srinivasan, Managing Director of the renowned Sree Annapoorna Hotel and honorary president of the Tamil Nadu Hotels Association, apologizing to Finance Minister Nirmala Sitharaman over comments regarding the Goods and Services Tax (GST) has sparked discussions within the hospitality industry.

The incident followed a meeting on September 11, where Srinivasan represented the Tamil Nadu Hotels Association at an industry event attended by the Finance Minister in Coimbatore. During the meeting, he highlighted the challenges faced by hoteliers due to inconsistencies in GST rates. His humorous remarks on the confusion caused by differing tax rates on food items, including buns and cream, led to laughter in the audience and quickly went viral on social media.

Srinivasan had raised concerns over the complexity of the GST structure, humorously stating, “The problem is that GST is applied differently to each item. For example: there is no GST on bun, but if you put cream in it, GST becomes 18%. Customers now ask for bun and cream separately to avoid paying the higher tax.” He also commented on regional discrepancies in tax rates, urging for a more uniform GST on items like sweets and namkeen, which are commonly consumed together in Tamil Nadu.

Following the public reaction to his speech, Srinivasan met with Sitharaman in a closed-door meeting, where he apologized for any unintended offense. The video of this private exchange was later shared by local BJP leaders, drawing attention across various platforms.

Sources within the Tamil Nadu Hotels Association clarified that Srinivasan’s remarks were meant to represent the collective concerns of the hotel industry regarding GST complexities and not to cause any offense. They also expressed surprise that the meeting was recorded and made public.

The hospitality sector continues to face challenges related to GST calculations, and the association hopes for a more streamlined approach to taxation in the future.

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