Charging GCT Without Being Registered? Here's Why That Could Cost You Millions
Three Jamaican businesses were recently fined a combined $20 million for illegally charging General Consumption Tax (GCT) without being registered. This shocking development has raised major concerns among small business owners who may unknowingly be putting themselves at risk.
At Premium Consultancy Services Limited, we often advise businesses to wait until they are eligible before charging GCT, and the consequences of ignoring that advice are serious.
What Is GCT and When Are You Required to Register?
General Consumption Tax (GCT) is a value-added tax applied to most goods and services in Jamaica. According to the General Consumption Tax Act, registration is mandatory once your annual taxable turnover exceeds $15 million.
You cannot legally:
- Charge GCT if you are not registered with the Tax Administration Jamaica (TAJ)
- Collect GCT from your customers unless you are an approved taxpayer
- Withhold GCT collected from customers without remitting it to the government
Recent Legal Cases: $20M in Fines Issued by TAJ
Case 1: Castillo Funny Club Entertainment
- Collected $15 million in GCT from 2020 to 2022 without registration
- Fined a staggering $17 million
Case 2: New Panda Food Limited
- Collected GCT while unregistered
- Fined $1 million
Case 3: Bodyscape Rejuvenation Centre Ltd.
- Pleaded guilty to two charges
- Fined $3 million
Why Small Businesses Fall Into This Trap
Many entrepreneurs:
- Fail to get professional advice.
- Don’t fully understand the GCT registration threshold
- Want to appear more 'established' by issuing invoices with GCT
- Are copying invoice formats from larger competitors
- Don’t realize that GCT collected must be paid over to TAJ on time
How to Stay Compliant with GCT Regulations
- Track Your Turnover/Sales
- Do not Charge GCT Unless Registered
- File the GCT return and make payment, where applicable, by the last working day of the following month. For example, the August 2025 GCT return is due on September 30, 2025.
- Get Professional Support
Need Help? Let’s Fix It Before It Becomes a Problem
If you have already:
- Charged GCT while unregistered
- Crossed the $15M threshold but haven’t applied
- Collected GCT and didn’t remit it to TAJ
…it’s not too late to correct it but you must act quickly.
At Premium Consultancy Services Limited, we offer:
- GCT registration assistance
- Bookkeeping and revenue tracking
- Tax advisory
Final Reminder: Don’t Risk It
The law is clear: only registered taxpayers can charge GCT. Ignoring this rule can lead to criminal charges, massive fines, and even imprisonment.
Let this recent $20M in fines be your wake-up call.
Stay compliant. Stay in business.
Need help today? Explore our Business Support Services at www.pcsjm.com