ITC on ship repair (Dry Dock)

This discussion explores the eligibility of Input Tax Credit (ITC) on capital expenditure for ship dry dock repairs. The user questions whether ITC on dry dock costs, which are written off over 2.5 years, qualifies for the 5-year ITC period applicable to capital goods. The response clarifies that ITC on capital goods is generally claimable if used for business furtherance and subject to Section 17(5) exclusions, with the 5-year period relating to asset disposal. Crucially, mandatory dry dock repairs are essential for a ship's operation, suggesting potential eligibility.