Fabrication Contract

According to Section 2(119) of the CGST Act, 2017:

“works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.”

As fabrication work is specifically covered under definition of works contracts, it will not be categorised as job work. Fabrication will be categorised as works contract.

This definition talk only about fabrication of any immovable property.
I am referring to Contracts which are of pure fabrication in nature where the ownership does not change (The items are issued to contractor for fabrication without change of ownership)

If the treatment or process is carried out on goods of principal supplier/manufacturer and after completing the treatment and process such goods are transferred to principal supplier/manufacturer then such fabrication contract can be classified as Job work.