New Delhi [India], December 25 : The impact of GST 2.0 on consumer spending has proved to be short-lived, with card spends moderating after the festive season, even as new card issuance remained healthy, according to a report by Asit C. Mehta Investment Intermediates Limited (ACMIIL), a SEBI-registered stock broker.
The report said total card spends declined to Rs 1,887 billion in November 2025 from Rs 2,141 billion in October 2025.
This marked a sharp month-on-month (MoM) decline of 11.9 per cent, reflecting moderation in discretionary spending following the festive push. However, on a year-on-year (YoY) basis, total spending still rose by 11.5 per cent, indicating underlying resilience in consumer demand.
It stated "Impact of GST 2.0 Proves to be Short-lived as the Spending Moderate".
The report noted that while the initial boost from GST 2.0 faded quickly, card issuance continued to show steady momentum. The total number of cards outstanding stood at 115 million in November 2025 compared to 114 million in October 2025.
On a YoY basis, this represents an increase of around 7.1 per cent, with a total addition of 0.9 million cards, underscoring sustained interest in card-based payments.
In terms of transaction activity, the total volume of transactions declined to 501 million in November 2025 from 516 million in October 2025, a fall of 3 per cent MoM.
Despite this sequential decline, transaction volumes registered a strong growth of 27.3 per cent on a YoY basis, highlighting the continued expansion in the usage of cards for everyday payments.
The report also pointed to a moderation in spending intensity. Average spend per card fell to Rs 16,431 in November 2025 from Rs 18,784 in October 2025, translating into a decline of 12.5 per cent MoM.
However, on a YoY basis, the average spend per card increased by 4.1 per cent, suggesting that while short-term spending softened, longer-term consumption trends remain positive.
Card issuance data showed a steady addition to cards-in-force during the month. A total of 0.85 million cards were issued in November, taking the total cards-in-force to 114.9 million.
Among major banks, HDFC Bank led issuance with 0.21 million new cards, followed by State Bank of India with 0.11 million, ICICI Bank with 0.11 million, and Axis Bank with 0.07 million.
Within mid-sized banks, Federal Bank led issuance with 0.12 million new cards, followed by IDFC First Bank with 0.08 million cards.
Overall, the report said the data suggests that while the post-GST 2.0 spending boost and festive demand have tapered off, the structural growth in card adoption remains intact, supported by steady issuance and strong year-on-year growth in transactions.
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