Section 43, The Goods and Services Tax Act, 2009

(1) If a supplier has incorrectly treated a taxable supplyas an exempt or zero-rated supply because of misrepresentation or fraud by the recipient of the supply and the supplier has established beyond reasonable doubt that it carried out due diligence to assure itself of the authenticity of the recipient’s claim and to detect and prevent the fraud or misrepresentation, the Commissioner-General may assess the recipient of the supply for payment of the GST due in respect of the supply, including any interest or penalty payable as a result of the late payment of the GST, and the assessment is treated as an assessment of GST payable by the recipient for the purposes of this Act, whether or not the recipient is a taxable person. (2) An assessment under subsection (1) shall be made to the best judgement of the Commissioner-General based on the information available to him and such an assessment shall be made within 2 months of sufficient information being available to the Commissioner-General and no more than 6 months after the conclusion of an audit of the taxable person. (3) The Commissioner-General shall serve notice of the assessment on the recipient which shall not be more than 30 days after the date on which the notice is served and specifying– (a) the date of the assessment and the reason for the assessment; (b) the amount of GST payable or refundable as a result of the assessment; (c) the date on which that GST is due and payable; and (d) the time, place and manner in which an appeal against the assessment may be made. (4) Subsection (1) does not preclude the Commissioner- General from recovering from the supplier the GST, interest or penalty due in respect of the supply and– 66 67 Assessment of recipient. Act No. 8 of 2000. (a) the Commissioner-General may recover part of the GST payable on the supply from the supplier and part from the recipient; but (b) the Commissioner-General shall not recover more than the total amount of GST, interest, and penalty payable in relation to the supply. (5) If a supplier who incorrectly treated a taxable supply as an exempt or zero-rated supply because of misrepresentation or fraud by the recipient of the supply has paid to the Commissioner- General any amount of the GST, interest or penalty in respect of the supply, the supplier may seek to recover that amount from the recipient of the supply under civil law.