The double impact of GST 2.0 and the festive season: Digital transactions surged dramatically, with transactions worth ₹11 lakh crore recorded in the first two days.
The combination of GST 2.0's tax cuts and the festive season provided a significant boost to the Indian market. A 10-fold increase in digital payments and a 5-fold increase in credit card spending have boosted the economy. Learn the full report with statistics.
As the festive season began in the country, the Indian economy also gained momentum. This time, this excitement isn't just due to the festivals, but the new GST 2.0 rates also played a significant role. The double impact of GST 2.0 and the festive season has led to a massive surge in consumer demand, with digital transaction figures breaking all records.
As soon as Navratri began after the Shraddha Paksha, people began shopping in earnest. The situation is such that on the very first day of the implementation of the new rates, digital transactions saw a massive 10-fold increase. In the first two days, transactions worth approximately ₹11 lakh crore were recorded daily, demonstrating the extent to which people are now preferring digital payments over cash.
People Spending the Most on These Items
People are spending the most on cars, motorcycles, and home appliances. Market experts believe that the shopping spree that began after the end of Shraddha Paksha and the beginning of Navratri will continue until Diwali.
Impact of GST and Festivals
| Mode of Payment | 21Sep | 22Sep | 23Sep |
| NEFT | 21,224 | 1.6 Lk | 1.4Lk |
| UPI | 60,321 | 82,477 | 81,648 |
| IMPS | 10,520 | 20,241 | 20,114 |
| Credit Card | 2,620 | 12,945 | 8,922 |
| Debit Card | 647 | 1,690 | 1,360 |
These figures clearly show how the festivals and GST reductions have combined to take digital payments to new heights. NEFT transactions reached ₹1.6 lakh crore on September 22nd compared to September 21st, a massive single-day jump. UPI and IMPS transactions also saw a steady increase, reflecting the growing acceptance of digital means for both small and large payments.
Credit Card Users Benefited Greatly from GST 2.0
If anyone has benefited the most from GST 2.0, it's credit card users. Credit card spending has seen a massive five-fold increase in just the first three days of the new GST rates being implemented. While average daily spending previously ranged from ₹5,000 to ₹6,000, it has now risen to ₹20,000 to ₹25,000.
Average Daily Credit Card Spend for the Past Months
| Month | Spend(In Cr) |
| Jan | 5,953 |
| Feb | 5,985 |
| Mar | 6,513 |
| Apr | 6,154 |
| May | 6,136 |
| June | 6,114 |
| July | 6,265 |
| Aug | 6,178 |
| First 3 Day After GST | 25,000 |
This trend clearly shows that credit card customers have taken advantage of the benefits of GST 2.0. Especially during this festive season, when large expenditures are expected, credit cards have provided people with financial convenience and an opportunity to save.
