On the very first day of the newly revised GST regime, India witnessed a dramatic spike in credit card&ndash;based e-commerce spending. Online credit card transactions surged about six times, reaching ₹10,411 crore on September 22, up from ₹1,514 crore just a day earlier.
<h4 dir="ltr">What the Numbers Show</h4>
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On September 21, online credit card usage stood at ₹1,514 crore across ~36 lakh transactions.
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On September 22, the number of transactions leapt to nearly 95 lakh transactions amounting to ₹10,411 crore.
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The following day, September 23, the momentum remained strong with ₹7,274 crore spent via credit cards in ~70 lakh transactions.
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Point-of-sale (POS) transactions also more than doubled: from ₹1,106 crore on September 21 to ₹2,533 crore on September 22.
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Debit card transactions surged as well, rising from ₹193 crore to ₹814 crore within a day.
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UPI transactions climbed from ₹60,320 crore to ₹82,477 crore, reflecting broader digital payment growth.
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<h4 dir="ltr">What Drove the Surge</h4>
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Pent-up Demand + Festive Timing Many consumers had delayed major purchases awaiting the GST cut. The festive season amplified spending.
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GST Restructuring &amp; Rate Cuts The revised GST (&ldquo;GST 2.0&rdquo;) simplified slabs and reduced rates on several goods, instantly making products cheaper.
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Retailer &amp; Bank Offers Special festive offers and cashbacks pushed consumers toward digital modes of payment.
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Digital Payment Momentum India&rsquo;s ongoing shift to digital payments received a strong push as consumers and merchants embraced cards and UPI.
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<h4 dir="ltr">Implications &amp; Sustainability</h4>
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Consumption Boost vs. Durability &ndash; Part of the surge could be advance purchases; sustainability remains to be seen.
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Pressure on Supply Chains &ndash; Sudden demand spikes can stress logistics and inventories.
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Tax Revenue Impact &ndash; Lower GST rates may cut unit tax, but higher transaction volumes could offset losses
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Behavioural Change &ndash; More consumers using cards and UPI can deepen digital payment adoption.
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Momentum Risks &ndash; Without continued incentives, spending may stabilise at lower levels in the coming weeks.
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Day 1 of sweeping GST cuts, online credit card transactions jumped six-fold to ₹10,000+ cr

GST Cut Sparks 6× Jump in Credit Card Spend

Day 1 of sweeping GST cuts, online credit card transactions jumped six-fold to ₹10,000+ cr

September 26, 2025 | 15:27 IST