Urgent Query - Export from India to the UK

[Raj Targotra]

Hello Respected members,

I have an urgent query regarding Goods movement and GST, I would be really thankful if you could please share your valuable advise and guide me through the right process. I have a UK based Limited company and have formed a subsidiary company in India. The role for my Indian company is to receive the products from suppliers based in India, check the products quality, rebranding and repackaging the products and then ship them in the UK.

The UK company is responsible for paying any expenses and wages to the employees in India.

Here is my query: My suppliers are based in India and they will be dealing with my team based in India. Now, if suppliers ship to and bill to my Indian company (for products quality check and rebranding), does that mean my Indian company has to raise a new invoice to the UK company to ship the final products in the UK ?

Does that mean my Indian company has to include their profit margins + taxes in the new invoice ?

If they do so then this adds more to the final product cost making them overpriced and I might have to struggle in selling them in the UK.

Is there any workaround that I can use Indian company just to do back office work (quality checks & rebranding) and not to add any other costs so that the final product remains within the reasonable price.

What is the best way to bring products from supplier in India to the UK without adding any additional costs ?

I'm looking to bring my first shipment very soon and would really appreciate a quick response.

I look forward to hearing from you soon.

Regards,

Raj

AI Summary

UK Business Owner Queries GST Impact on Indian Exports; Advised on Margins, Transfer Pricing, and Tax Benefits A business owner with a UK-based company and an Indian subsidiary inquires about the GST implications of exporting goods from India to the UK. The Indian subsidiary handles quality checks and rebranding before shipping to the UK. The owner is concerned about additional costs from invoicing, profit margins, and taxes, which could increase the final product price. A respondent advises that the Indian company can charge a reasonable margin without inflating costs, and suggests considering transfer pricing regulations and potential tax benefits for exports. Another participant seeks clarification on an incomplete response, which is confirmed as an oversight.