The Supreme Court upheld Indian tax authorities’ right to tax gains from Tiger Global’s Flipkart exit via Mauritius entities
The India–Mauritius tax treaty, long seen as a tax-planning route, now faces its strongest judicial pushback yet
Authorities argued control lay outside Mauritius and gains arose from a Singapore entity, denying treaty exemption
The ruling raises fears over retrospective interpretation, unsettling investors who relied on existing laws
Despite prior acquisition, the Court held post-GAAR sale taxable—blurring certainty around transition provisions
Protecting tax sovereignty matters, but policy certainty and treaty sanctity are vital for long-term investment trust