doubts abouts merits and demerits of VAT

Avinasheswar (Business Consultant) (117 Points)

10 May 2007  
Can anyone please explain to me HOW THIS EFFECTS WHO both favourably and adversely?
As per my calculation it is the same tax rate as before the only difference being now no one can escape the taxation.Govt merits from this without demeriting except those antisocial elements who were evading tax.