Supreme Court rules Tiger Global liable to pay tax on 2018 Flipkart stake sale

The Supreme Court of India has delivered a landmark decision in the long‑running tax dispute involving U.S. investment firm Tiger Global Management LLC and its 2018 sale of a Flipkart stake to Walmart. The apex court held that Tiger Global’s $1.6 billion capital gains from the Flipkart deal are taxable in India, rejecting the firm’s claim to exemption under the India–Mauritius Double Taxation Avoidance Agreement (DTAA).

Tiger Global had structured its Flipkart investment through Mauritius‑based entities, arguing they were entitled to treaty benefits that would exempt their profits from Indian tax. However, Indian tax authorities argued these entities were merely “conduits” used to avoid Indian capital gains tax. In overturning a previous Delhi High Court ruling that had favored the firm, the Supreme Court backed the tax department’s position and allowed the appeal, clearing the way for the levy of capital gains tax on the transaction.

The judgment is widely seen as setting a significant precedent for how international tax treaties are interpreted in India and could influence the structuring of future cross‑border investments. It highlights the court’s emphasis on scrutinizing the economic substance of offshore investment structures rather than solely relying on formal treaty eligibility.