GST 2.0: Volkswagen cuts car prices by up to ₹3.3L
What's the story
Volkswagen India has announced a major price cut across its entire model range, effective September 22. The move is in line with the new Goods and Services Tax (GST) structure coming into effect on that date. The company said the revised prices are aimed at passing on the full benefit of the GST rate reduction to customers.
Price adjustments
Tiguan R-Line will be cheaper
The price cuts announced by Volkswagen India are significant. The Tiguan R-Line SUV will be cheaper by up to ₹3.27 lakh. The compact SUV Taigun will see a reduction of up to ₹68,400 in its price. Meanwhile, the sedan Virtus will be priced lower by as much as ₹66,900 under this new strategy.
Tax reform
GST rates revised from 4 slabs to 2
India's GST system has been overhauled, with four tax slabs merged into two main rates: 5% and 18%. There is also a 40% slab for premium consumer goods such as large cars and luxury vehicles. The changes, effective from September 22, are aimed at reducing the effective tax burden on certain vehicles by removing compensatory cesses.