In Focus by The Hindu Decoding SC’s ruling on Tiger Global’s tax ruling
Jan 26, 2026
Vinod Joseph, partner at Economic Laws Practice who advises on investment structuring and cross-border tax, explains the Supreme Court ruling on Tiger Global’s Flipkart sale. He traces the dispute timeline and why the court prioritized substance over form. He discusses how GAAR interacts with tax treaties, likely shifts in investor jurisdiction choices, and broader effects on private equity and startup funding.
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Timeline Of The Tiger Global Case
- Tiger Global acquired Flipkart shares between 2011 and 2015 and sold them in 2018 as part of Walmart's takeover.
- AAR denied nil withholding certificates and called the arrangement prima facie tax avoidance, leading to appeals and the Supreme Court ruling.
GAR Can Override Treaty Benefits
- The Supreme Court held GAR overrides treaty benefits when the structure is abusive and lacks substance.
- Pre-2017 grandfathering fails if the exit post-2017 yields tax benefits via an abusive structure.
Substance Over Form Matters
- The Court applied 'substance over form' to tax residence and treaty claims.
- A Mauritius TRC alone doesn't prove residence or substance for DTAA benefits.