vat is not inflationery is long term process if it working definatly work inflation is going down. vat is only solution to control black marketing or other word it is only process to control over market through indirect taxetion
The point is not clear. Whether VAT is one time TAX in a State or with change of hands, there will be value addition (due to charging profit by traders) of it will be charged at whole sale point/factory gate like Excise Duty(CENVAT). If there is value addition with change of hand only, certainly , in my opinion, it will be inflationary.
