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Section 2(68) - Definition of "Job Work" under CGST Act

2(68).1 Definition of Job Work

Section 2(68) “Job Work” means

any treatment or process undertaken by a person on goods belonging to another RP

and the expression “job worker” shall be construed accordingly;

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Contents of a job-work:

  • The ownership of the goods does not transfer to the job-worker but it rests with the principal.
  • The jobworker is required to carry out the process specified by the principal on the goods.

 

2(68).1 Questions & Solution

Question-1 [FAQ-22/12/2018-Ch9-1]

What is job work?

Ans. Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called ‘job worker’ and the person to whom the goods belongs is called ‘principal’.

This definition is much wider than the one given in Notification No. 214/86 –CE dated 23rd March, 1986. In the said notification, job work has been defined in such a manner so as to ensure that the activity of job work must amount to manufacture. Thus the definition of job work itself reflects the change in basic scheme of taxation relating to job work in the proposed GST regime.

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