Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Job Work”.
So what do you mean by “Job Work”?
Section 2(68) of CGST Act, 2017 – “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly;
Conclusion:
Hence it is understood that any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall
be construed accordingly; is known as “Job Work”.