On Friday, November 10, the Goods and Services Tax (GST) Council announced the biggest concession on taxes since the new indirect tax system took effect on July 1. The Council reduced the list of items attracting the top 28% tax rate to just 50 from 227 previously. The items that were removed were then placed under the 18% tax bracket.

The tax rate was reduced on  177 items ranging rom granite and marble to chewing gum and chocolates, deodorants, and detergents, and will result in a revenue loss of about $3 billion  a year. The tax cut is aimed at making the new indirect tax regime more acceptable to people and to reduce the burden on businesses, reports Mint.

Prime Minister Modi said, “There is consensus that slowly the 28% slab should be brought to 18%. But it will take some time because it has a big revenue implication.”