Commercial substance threshold and GAAR application

The Supreme Court has ruled that capital gains from Tiger Global’s 2018 exit from Flipkart are taxable in India, even though the investment was routed through Mauritius and backed by a tax treaty. In this video, ThePrint explains why the court held that the offshore structure lacked real commercial substance, how India’s General Anti-Avoidance Rule (GAAR) overrides treaty protection, and what this means for foreign investors, private equity funds, and cross-border M&A deals.