GST 2.0 Impact: Volkswagen Virtus, Taigun, Tiguan Now Cheaper in India

Volkswagen India has confirmed that it will fully pass on the benefits of the revised GST 2.0 structure to customers. Starting September 22, 2025, buyers can enjoy significant price cuts across the brand’s lineup.

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Price Reduction Details

Under the updated tax regime, several Volkswagen cars will become more affordable. The Virtus sedan will get benefits of up to Rs 66,900, the Taigun SUV up to Rs 68,400, and the Tiguan R-Line flagship up to Rs 3,26,900, depending on the variant.

Extra Festive Offers

Apart from GST-linked cuts, Volkswagen is offering limited-period festive discounts. Customers can avail benefits up to Rs 1.61 lakh on select Taigun models and up to Rs 3 lakh on the premium Tiguan R-Line. Interested buyers can connect with nearby Volkswagen dealerships for detailed offers.

Festive Season Boost

With Diwali around the corner, Volkswagen expects these revised prices and special schemes to attract more customers. The brand’s current portfolio in India includes the Taigun, Virtus, Tiguan R-Line, and Golf GTI.

Wider GST Impact

The GST 2.0 reduction will not just help Volkswagen but the entire automobile industry. From September 22, 2025, GST on small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances will be reduced from 28% to 18%. Popular cars like the Maruti Suzuki Alto, Hyundai Grand i10, and Tata Tiago, along with mass-market two-wheelers like the Honda Shine, Bajaj Pulsar, Honda Activa, and Hero Splendor, will see price cuts of nearly 10%.

Simplified Auto Taxation

The new structure brings a uniform 18% GST on auto parts, removing earlier classification issues. Small hybrid cars (petrol up to 1,200cc/4,000mm and diesel up to 1,500cc/4,000mm) will also benefit from the lower slab.

Luxury Cars Get Costlier

While small vehicles get relief, luxury cars, large SUVs, and premium bikes over 350cc will attract a steep 40% GST rate. This could make them significantly more expensive compared to mid-segment vehicles.

Relief for Farmers

The GST changes also cover the agriculture sector. Taxes on tractors and equipment like harvesters, threshers, fodder balers, hay movers, and composters have been cut from 12% to just 5%, helping farmers save more on essential machinery.

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