Supreme Court Rules Tiger Global's $1.6 Billion Flipkart Sale Taxable in India

• India's Supreme Court ruled that Tiger Global's $1.6 billion stake sale in Flipkart to Walmart in 2018 is subject to capital gains tax in India.
• The ruling is a significant win for the Indian government against 'treaty shopping,' where investments are routed through countries like Mauritius to avoid taxes.
• Tiger Global had claimed tax exemption under the India–Mauritius Double Taxation Avoidance Agreement (DTAA), but the tax department argued the Mauritius entity lacked genuine commercial substance.
• The Supreme Court overturned the Delhi High Court's earlier relief, stating the investment structure was primarily designed to exploit the tax treaty and avoid tax.
• This verdict has major implications for foreign investors, private equity funds, and multinational corporations investing in Indian companies, potentially leading to higher compliance costs and a review of existing investment structures.

Why It Matters: Supreme Court's ruling makes Tiger Global's Flipkart stake sale taxable, impacting foreign investment structures in India.