Sounds like someone has been stung ....
I can't speak from any legal point of view nor the rest of our country but as best I know there is no actual Trade or Qualification required as really a "Gunsmith" is just a name. A little different in the USA I believe but here not so.
In NSW I would believe you are required to be a "Firearms Dealer" and have the appropriate licence issued from the NSW FAR.
So, the local Gun Shop is a Dealer and can store, modify and do repairs to a Firearm. Doesn't make them a "Gunsmith" business. Generally No.
Reputation, reliability, expertise etc in doing repairs, machining, modifications, construction etc of Firearms and Parts I would believe makes a "Gunsmith".
I deal with any one of a few or more "Gunsmiths" ... they have been in the business for many years, one is also a "Barrel Manufacturer" and all are or have been very involved in the Precision Shooting side and highly regarded target shooters of any form available here in Aussie. One is the consultant for the NRA, another is an authorised repairer for Winchester Australia. then a Barrel Manufacturer etc.
Someone that doesn't do any machining, then in my opinion not a "Gunsmith".... Sounds like a risky attempt to do something.
I would think that a start would be being a qualified Tradesman in "Machining, Fitting & Turning, Mechanical Engineer and /or such" who holds a current recognised ticket....but, as I said, there is not official Trade called "Gunsmith" ..... that I know of....