a) Meaning & Nature of job work:
The definition of job work has been defined in the Section 2(68) of CGST Act, “Job work” means any treatment or process under taken by a person on goods belonging to another registered person.
For the purpose of this article, ‘Principal’ will be the persons who sends the goods for job work.
Treatment or process include packing, labelling, testing, re-conditioning, re-packing, inspection etc.,
Schedule II clause 3 of CGST Act, considers any treatment or process applied to another person goods as a supply of services.
To determine the value of job work charges, value of goods sent by the principal shall not be included.