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Krishna reveals the secret of action without bondage: perform action as sacrifice ('yajñāyācarataḥ karma'). When actions are done as offering rather than personal gain, they 'dissolve' ('pravilīyate')—they don't create karma. The qualities needed: 'gata-saṅgasya' (free from attachment), 'muktasya' (liberated), 'jñānāvasthita-cetasaḥ' (consciousness established in knowledge). This verse introduces the concept of yajna (sacrifice/offering), which will be central to understanding action. When you act as sacrifice—giving rather than taking, offering rather than acquiring—action loses its binding power. 'Samagraṁ pravilīyate' (all action dissolves) means complete freedom from karma.
See how this wisdom applies to different life situations