I am Android developer, my application uses a bunch of http REST calls and it gets responses from servers. I use Charles to inspect the data (so I have to install Charles certificate onto my device so that https traffic can be read by myself).
Are there any tools out there like Charles that will allow me to modfiy that response packet before sending to the client ??
Depending on what exactly you want to modify, Charles' inbuilt Rewrite Tool might be what you are looking for. You find it in the Tools menu. You can specify which requests shall be modified by protocol, host, port, path and query, and you have the following modification options:
Another option is Fiddler. Like Charles it can be configured as a proxy for android, decrypt HTTPS traffic and modify request and response.