Although Polarization Modulation offers a high spectral efficiency, it has been not exploited much in modern communication systems because of the involvement of high switching speeds and complexity of associated hardware. We propose a dynamically controllable graphene metasurface capable to switch the polarization state of incident THz waves in real-time. The metasurface is designed by patterning two-dimensional graphene sheets with Fano-resonant chiral unit cells. Since the reflectance spectrum is characterized with co and cross polarized fields that bear asymmetric Fano line-shapes, several combinations of linear and elliptical polarization states are observed in a narrowband spectrum. At a fixed frequency, the electrostatic tunability property of graphene allows to switch between different polarization states by varying the chemical potential between 500 and 700 meV. The polarization state modulation with the proposed chiral graphene based metasurface is applied to implement a quaternary modulated digital communication system. Full-wave simulation results show the strong possibility of polarization modulation in THz communication systems. Graphene metasurfaces on account of the high electron mobility and discrete Fermi levels offer high switching speeds and seamless integration with digital systems.