News Tamil Nadu

“Just Give Me The Bun, I’ll Add The Cream & Jam Myself, Say Customers,” Coimbatore Entrepreneur Appeals Hilariously To Fin Min For GST Reforms

September 12, 2024
The Commune

Union Finance Minister Nirmala Sitharaman met with entrepreneurs from various sectors, including small and micro industries, at the Kodisia campus in Coimbatore. The event, organized by Codisia and Lagu Udyog Bharati Industrial Organization, saw participation from business owners across Coimbatore, Tirupur, and Erode districts. Coimbatore South MLA Vanathi Srinivasan also attended the event, which provided a platform for the entrepreneurs to discuss their concerns and raise demands directly with the Finance Minister.

Entrepreneurs Present Demands

During the meeting, several entrepreneurs from diverse sectors voiced grievances regarding GST rates, loan schemes, and other pressing issues affecting their businesses. One of the key demands was from hoteliers, represented by Srinivasan, the chairman of Sri Annapurna Hotel, who highlighted the inconsistencies in GST rates. He pointed out that different rates were applied to items on the same bill, causing customer confusion and dissatisfaction.

“There is 5% GST on sweets but 12% on savouries, and 18% on cream-filled buns, whereas there is no GST on buns! Customers often complain, saying, ‘Just give me the bun, I’ll add the cream and jam myself,’“ said Srinivasan, leading to laughter from the crowd.

He emphasized the need for a uniform GST rate on food items, particularly in Tamil Nadu, where sweet and savoury items are consumed together.

Taking a dig at BJP MLA Vanathi Srinivasan, he said, “So please increase it uniformly for everything. Secondly, this MLA, madam, is from our constituency. She said in the North of India, they are eating too many sweets, so the GST has been fixed at 5% and 12% for savouries. I said no. In TN, we call it sweet karma coffee (sweets, savouries, and coffee). So please consider it, madam; please make it uniform.”

Srinivasan further criticized the complexity of the GST system, stating, “The computer crashes when we try to input different GST percentages in a single bill. Even the GST officials are confused, as all items have the same input but different tax rates. This inconsistency is causing issues for both shopkeepers and customers.”

In response, Union Finance Minister Nirmala Sitharaman acknowledged the entrepreneurs’ concerns, stating that the government was working to simplify the GST system. She assured the attendees that she would bring these concerns to the GST Council, particularly the varying tax rates on food items. Sitharaman highlighted that GST, Customs, Income Tax, MSME, EOB, and Canara Bank officials had come from Delhi to address the grievances of the industrialists. “We will take steps to address each petition given,“ she assured, adding that 1,500 outdated industrial laws have already been removed, and 40,000 complaints have been resolved nationwide.

Plans For Coimbatore

Sitharaman further announced the government’s plans to boost business development in Coimbatore and other parts of Tamil Nadu. She emphasized that Coimbatore is a favourable zone for industrial growth and cited the Atal Innovation Mission and Defense Corridor as key initiatives being implemented in the region. Additionally, she announced that CITBI Bank (Credit Guarantee Trust for Micro and Small Enterprises) would be opening 70 new branches across India in the next three years, with one branch already operational in Coimbatore’s Kurchi area. The bank has disbursed Rs 620 crore in loans to small and micro enterprises in the region, including Rs 491 crore in just one year.

Financial Assistance For Entrepreneurs

Sitharaman also discussed the Mudra scheme, which provides collateral-free loans to micro and small enterprises. She revealed that 49.5 crore people across India have benefited from the scheme, with 5.6 crore beneficiaries in Tamil Nadu alone. Of this, 20 lakh people in Coimbatore have availed loans worth Rs 13,180 crore. She announced plans to increase the loan limit from Rs 10 lakh to Rs 20 lakh under the Mudra scheme, further supporting small businesses.

Industry Bodies Demand GST Reforms

Representatives from the motor pump industry, along with the hotel industry, also called for a reduction in GST rates. They expressed that the current rates are affecting the competitiveness of their products in the market, both domestically and internationally.

Sitharaman praised Coimbatore’s business environment, noting that the city’s industry-friendly policies and infrastructure make it an ideal location for government projects. She cited the Atal Innovation Mission in Coimbatore as a national model. She expressed the government’s commitment to supporting industries through various initiatives, including increased funding for skill development and business innovation.

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