Section 41, The Goods and Services Tax Act, 2009

(1) If the calculation under section 27 results in a negativeamount of GST payable because the total input tax credits allowed in the tax period exceed the total output tax payable for the tax period– (a) the excess is carried forward and allowed as an input tax credit in the following tax period and any remaining amount not credited in that period is carried forward to the next tax period, and this process continues until either— (i) no amount remains; or (ii) the amount or part of it, has been carried forward until taxable activity ceases, or deregistration is granted by the Commissioner-General ; and (b) any amount standing on credit at the time that the taxable activity ceases or deregistration is granted by the Commissioner- General, on application in the prescribed form and manner shall be refunded to the person within 2 months after the date of the application. (2) If, in a particular tax period, a taxable person is allowed input tax credits because of more than one excess carried forward under subsection (1) from an earlier tax period, the excess credit from the earlier tax period is allowed first. (3) Notwithstanding subsection (1), the Commissioner- General shall refund an excess within 2 months after lodgement of the GST return for the tax period if, considering the person’s turnover or 60 61 Due date for payment of GST on Refunds. predicted turnover from supplies made or to be made during the period of 12 months consisting of the current month, the previous 5 months, and the following 6 months— (a) 50 per cent or more of the person’s turnover is from supplies that are zero-rated exports under the First Schedule; or (b) 50 per cent or more of the person’s expenditure on inputs is from acquisitions or imports that relate to making supplies that are zero-rated exports under the First Schedule. (4) A taxable person who has erroneously overdeclared or overpaid GST for a tax period may apply in writing to the Commissioner-General for an input tax credit to the amount overdeclared or overpaid and, if the Commissioner-General is satisfied that the amount has been erroneously overpaid, he shall allow the person an input tax credit for that amount or for such other amount the Commissioner-General is satisfied was erroneously paid, in the tax period in which the Commissioner-General notifies the person in writing of his decision and such a decision shall be made within one month of the application and of sufficient information being supplied to the Commissioner- General to enable him to make a decision. (5) An application under subsection (4) shall be made within 3 years from the end of the tax period to which the overpayment relates and the Commissioner-General shall make a decision in relation to the application within 30 days of the date of the application, unless on or before that time the Commissioner-General commences an audit of the taxable person in relation to that tax period. (6) If there is an excess referred to in this section or a refund is payable to a person under this section, the Commissioner- General may apply the excess or refundable amount first towards the reduction of any arrears, interest or penalty payable by the person under this Act or against payment of any other taxes, levies or duties, including any interest or penalty, collected by the National Revenue Authority including any unpaid amounts under the repealed taxes. (7) Notwithstanding anything in this section, if the amount of an excess to be refunded is less than Le 300,000 it shall continue to be carried forward into succeeding tax periods until it is reduced to nil or accumulates to an amount above Le 300,000. (8) The Commissioner-General may authorise, subject to appropriate conditions and restrictions under this Act, the granting of a refund of part or all of the GST incurred in relation to a taxable acquisition or a taxable import made by– (a) a non-profit body entitled to a refund of GST paid under an agreement with the Government of Sierra Leone duly ratified by Parliament; (b) a public international organisation, foreign government, or any other person to the extent that the organisation, government, or person is entitled to exemption from GST under an international assistance agreement duly ratified by Parliament; (c) a person to the extent provided under the Diplomatic Immunities and Privileges Act, 1961, an international convention having the force of law in Sierra Leone, or the principles of international law; or (d) a diplomatic or consular mission of a foreign country established in Sierra Leone, relating to transactions concluded for the official purposes of such mission. (9) A claim for a refund under subsection (8) shall be made in the prescribed form. (10) Where the Commissioner-General does not pay a refund within the time required under this section, interest is payable by the Commissioner-General on the amount outstanding at the bank lending rate as determined by the Bank of Sierra Leone. 62 63 Act No. 35 of 1961. PART XI–ASSESSMENTS