Question88: If a person buys luxury car under his firm or pvt ltd co name, can he avail ITC of the Luxury car. Practically such person won't use such car for his business purpose i.e inward or outward supply of goods.'

Answer We understood your question as follows:-
You purchase a luxury Car & using it for the purpose of Supply of goods. Whether the ITC is available.
Our reply is as follows:-
You have to proved following things for taking of credit.
1. The goods you are dealing with are transported through this vehicle.
2. The number of vehicle is given on Challan, E-way bill.
3. You are paying commercial tax of the luxury car as applicable in your state. Please note that you have to pay commercial tax for using vehicle for transportation of goods which may be sometimes higher than benefit of ITC.
4. You would be using it sometimes for your conveyance or for passenger and not for movement of goods then Section 17 of CGST will apply and you have to calculate tax to be reversed on the basis of vehicle used for other than transport of goods.
There is a huge scope of tax planning in GST but you should be aware about legal framework and investigation. (Reply dt. 12/4/2018)