The General Consumption Tax Act provides for the imposition of a General Consumption Tax to be charged on the importation of goods and services as well as on the sale of goods and services. The Act came into effect from the 5th April 1995.

The Tax is applied on both goods and services as shown in the two categories listed below.

1. The importation of goods into Grenada.
2. The Sale of goods and services in Grenada.

The rates that are currently applied in the administration of the General Consumption Tax are as follows:

Category	Rates
Local Manufacturers & Long Distance Phone Calls (relating to Cable & Wireless)	10%
Hotels & Restaurants	8%
All other services	5%

Interest

Interest is charged at the rate of two percent per month or part thereof for the period during which it remains unpaid.

Registration

You are required to be registered with the Inland Revenue once you make taxable sales.

Zero-rated and Exemptions

There are certain goods and services that are zero-rated or exempted from the General Consumption Tax. They are as follows:-

• Vegetables, fresh, chilled or frozen.
• Agricultural tools.
• Printed books, newspapers, magazines and brochures.
• Live stock; Meat and poultry.
• Computers.
• Advertisements published in any newspaper or periodical.
• Rental payments or accommodation excluding that provided by hotels and guest houses.
• Health services.
• Local Manufacturing certified by the GIDC.
• Services procured by projects approved by the Minister of Finance.