With the GST Council slashing tax rates on a wide range of consumer items—from air conditioners and refrigerators to small cars—festive shoppers are set to benefit from lower prices starting September 22. However, experts advise that the real gains this season may lie in how buyers use their credit cards, with instant discounts, cashbacks, and reward points adding an extra layer of savings.
Credit cards as savings tools
Financial planners emphasise that while GST rate cuts make big-ticket purchases more affordable, credit card offers can turn them into a “double bonanza.” From milestone vouchers to fuel waivers, small benefits add up, especially during the festive season when spending spikes.
“Accelerated reward points on shopping and dining also help stretch every rupee spent. Milestone vouchers, grocery cashback, and fuel waivers may look small, but they add up quietly,” says Saurabh Bansal, Founder, Finatwork Investment Advisor.
Instant discounts and festive deals
During the festive season, banks and card issuers typically roll out exclusive offers. These range from instant discounts on e-commerce platforms to deals on travel and hotels.
“The first thing to check is the instant cash discounts being offered—these vary by card type and minimum spending thresholds. Some premium cards may offer higher discounts or exclusive partner offers,” says Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution.
For instance, the HSBC Cashback Credit Card is offering discounts of up to ₹40,000 on holiday bookings, while the ICICI Amazon Credit Card provides 10% off on domestic flight bookings.
Reward points and redemption
Every card purchase accrues reward points, which can be redeemed for vouchers, discounts, or travel bookings. Some cards offer bonus points for specific categories such as dining or travel.
“Many cards provide loyalty or reward points that can later be redeemed for purchases, vouchers, or travel bookings. A smart shopper should compare offers across cards and choose the one that provides the best blend of instant discounts, cashback, and long-term rewards,” Kapoor explains.
Cashback as direct savings
Cashback remains a popular option for festive buyers. For example, the SBI Cashback Card offers 5% cashback on online spending without merchant restrictions.
Combining cashback with platform discounts creates a multiplier effect on savings. “It’s also smart to use different cards for specific categories, such as groceries, gadgets, or fashion, while keeping an eye on cashback caps. The focus should always remain on planned purchases rather than impulse-driven spending,” Bansal adds.
Budgeting to avoid overspending
While deals abound, financial experts caution against unplanned spending. Adhil Shetty, CEO of BankBazaar.com, says budgeting is key.
“Once you have zeroed in on an amount that you can spare for your festival shopping, stick to that budget. For times that you overshoot your budget for whatever reason, have liquid funds at hand. So start saving up well in time so that you do not have to cut corners,” Shetty advises.
He further recommends preparing an exhaustive shopping list and resisting impulsive buying. “If you stick to your shopping list, the chances of overshooting your shopping budget will be smaller. Also, keep your eyes open for all the deals and discounts on items on your list. Even small savings add up in the long run,” he adds.
Outlook
With GST cuts bringing down prices and credit card deals amplifying savings, shoppers this festive season have an opportunity to maximise value. Experts say the best strategy combines careful planning, disciplined budgeting, and smart use of the right credit cards.