GST Cuts Before Navratri Drive Festive Shopping Boom With Transactions Over Rs 11 Lakh Crore

India’s festive season got off to a record-breaking start as the twin triggers of Navratri celebrations and major GST rate cuts on consumer durables fueled a surge in spending. According to the Reserve Bank of India (RBI), digital transactions jumped nearly tenfold, hitting Rs 11.31 lakh crore on September 22, compared with just Rs 1.18 lakh crore the previous day.The momentum carried into September 23, with Rs 11.19 lakh crore worth of digital payments recorded, signaling a powerful start to the festive cycle that is expected to continue through Diwali.GST Reforms Spark Consumer OptimismThe government’s sweeping GST reforms — which halved the number of tax slabs and lowered levies on cars, motorcycles, and home appliances — have clearly boosted

discretionary spending. Automotive companies stand to benefit the most, with tax rates on several popular models reduced to 18% from 28%, leading to increased showroom bookings.“The conclusion of Shraddh and the onset of Navratri, coupled with recent GST cuts and ecommerce discounts, have significantly lifted consumer sentiment,” said Anand Kumar Bajaj, Founder & CEO of PayNearby, in comments to ET. “We’re seeing a sharp uptick in apparel and appliance sales, signaling renewed momentum in consumer demand.”Digital Channels Lead the Festive RushThe biggest surge was recorded across real-time digital platforms such as UPI, credit cards, debit cards, NEFT, IMPS, and RTGS.

• RTGS transactions alone spiked to Rs 8.14 lakh crore from Rs 17,166 crore the previous day, reflecting high-value purchases such as cars routed through dealers.
• Credit card spending on ecommerce platforms during Flipkart and Amazon’s mega festive sales rose sixfold to Rs 10,411 crore.
• Debit card spending more than tripled to Rs 814 crore, underscoring strong demand for high-ticket purchases.

Bikram Yadav, Head of Credit Cards at RBL Bank, told ET: “Following the GST relief and strong consumer sentiment, demand has surged nearly 20% in just the past couple of days. With low inflation and festive momentum, we expect spending to remain strong across ecommerce, travel, and electronics.”A Strong Start to the Festive EconomyThe timing of GST relief ahead of Navratri appears to have been a strategic boost for consumption, analysts say. Digital payments hitting the Rs 11 lakh crore mark underlines the scale of India’s ongoing digital adoption, while festive sales have reaffirmed consumer appetite despite global headwinds.With ecommerce majors launching aggressive discount campaigns and auto dealers reporting record advance bookings, economists anticipate that the combination of tax relief, digital adoption, and seasonal demand could provide a significant lift to India’s consumption-led growth story in the coming quarter.