In view of the fact that the emergence of information and communication technology (ICT) and e-commerce are the most important developments since the industrial revolution, this study examines the role ICT and e-commerce as the most important factor that will revolutionize economic growth. The study presents a proper understanding of the modus operandi of tax policy and tax governance in relation to information and communication technology with special reference to e-commerce . In doing so, it analyzes the economic implications of taxation/non-taxation of e-commerce. It also examines the issue of how the rise of e-commerce will affect the suitability of various concepts and practices in the prevailing tax systems and the overall economic development in the long run.

The study suggests a bottom up approach, wherein micro economic variables are used to prove the hypothesis. Accordingly, it takes a case study of Andhra Pradesh - the state which has launched several projects connected to the state’s portal for better service delivery to the citizen. With a view to attempting effect of e-commerce on economic development this study proposes a methodology of estimating productivity gains through it. The study puts forth policy recommendations to have good access and reasonable affordability of these services.