Exporting to India

Taxes, duty and legal considerations when exporting to India

Guidance

There are many things to consider before you start exporting to India. It's essential to find out about local rules and regulations on tax and duty in your intended market.

Check for trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.

See current trade barriers.

See resolved trade barriers.

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

See current duties and customs procedures.

Taxes

The UK and India have a Double Taxation Agreement (DTA), which helps ensure that the same income is not taxed twice in both countries. 

India’s taxation system operates at both central and state government levels. The introduction of the national Goods and Services Tax (GST) has helped simplify this system by creating a unified market across the country. GST replaces multiple indirect taxes, making it easier for businesses to operate within a market of over 1.3 billion people. You can find out more about taxation from India’s National Investment Promotion and Facilitation Agency.

Import restrictions

The Indian Ministry of Commerce and Industry (MOCI) lists goods where restrictions are imposed, or import is not allowed.

Standards and regulations

Some imported products must meet Indian quality standards and have to be certified by the Bureau of Indian Standards (BIS) before being exported to India. BIS does offer pre-certification, subject to production inspections. Find out more about product certification.

Use the Food Import Clearance System if you’re exporting food to India.

Labelling requirements

Product labels can be in English or Hindi. All imported goods, as well as transport documents, must show standard units of measurement and weight.

You must comply with these requirements for your consignment to be cleared by customs in India.

Using agents and distributors

You can export to India by contacting customers directly. This could be a first step before appointing a partner in India. Before appointing an agent or distributor, you should look closely at your potential partners:

  • local business reputation
  • financial resources
  • regional coverage
  • marketing ability

It may be best to appoint a series of agents or distributors to cover different regions.

Online selling to India

The Department for Business and Trade (DBT) trade advisers in India can help you find the online marketplace best suited to your product or service and get access to deals negotiated by the UK government.

Intellectual property

Intellectual property (IP) rights are territorial, meaning they only provide protection in the countries where they are granted or registered. Rights protected in the UK do not automatically apply overseas.

If you plan to trade internationally or sell to customers abroad online, you should consider securing IP protection in each market where you operate.

The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP in India.

British businesses looking for IP support can also contact the IP Attaché for India.

Getting paid

You need to use secure terms of payment in India through a letter of credit or documentary collection through your bank. The other option is payment or partial payment in advance. Open account transactions are not allowed in India.

Your contract should always clearly state the terms for delivery and payment of goods and services. Indian law does not regulate late payments, and settlement action through the courts can be expensive and take a long time.

If you have any concerns about getting paid for your export, speak to UK Export Finance (UKEF) about insurance against buyer default.