An image decoding method according to the present document comprises the step of deriving modified transform coefficients, wherein the step of deriving the modified transform coefficients comprises the step of parsing an LFNST index on the basis of a variable indicating whether an ISP is applied to a current block or whether an effective coefficient is present in a DC component of the current block, according to the tree type of the current block, wherein the variable may be derived on the basis of an individual transform skip flag value for a color component of the current block.