In the Indian federal tax system, which of the following taxes traditionally fell under the exclusive jurisdiction of the State Governments?

Introduction / Context:
This question is from Indian public finance and focuses on the division of taxation powers between the Union and the States. Before the introduction of the Goods and Services Tax, different taxes were clearly assigned either to the Union List or to the State List in the Constitution. Knowing which taxes belonged exclusively to the States is a frequent multiple choice topic in polity and economy sections.

Given Data / Assumptions:

• The question refers to the traditional constitutional allocation of taxes, not the post GST framework.
• We are asked about exclusive jurisdiction of State Governments.
• The options include sales tax, customs duty, income tax, and corporation tax, plus another plausible tax.

Concept / Approach:
The Constitution of India divides taxation powers. Customs duty, income tax on non agricultural income, and corporation tax are in the Union List and are levied by the Central Government. State Governments historically levied sales tax on the sale of goods within the state, along with state excise on alcohol and certain other items. Therefore, sales tax was an exclusive State subject before the move to value added tax and later GST.

Step-by-Step Solution:
Step 1: Recall which taxes are clearly Union List items. Customs duty on imports and exports is a central subject.Step 2: Income tax on non agricultural income is also imposed and collected by the Centre, though some share is distributed to States.Step 3: Corporation tax on company profits is likewise a central levy.Step 4: Sales tax on the sale of goods within a state used to be imposed by State Governments and was their important revenue source.Step 5: Therefore, among the options, sales tax is the tax under exclusive jurisdiction of the States.

Verification / Alternative Check:
Think of how states used to compete by changing value added tax rates on items like petrol, diesel, and consumer goods. These variations existed because sales tax or VAT was a state subject. In contrast, customs duty rates, corporation tax rates, and most income tax slabs are decided only by the Union, which confirms the central nature of these taxes.

Why Other Options Are Wrong:
Custom duty is a central subject as part of trade and commerce with foreign countries. Income tax (except for agricultural income) is levied and collected by the Union Government, with a portion later distributed to the States. Corporation tax is also a Union List tax. Service tax was similarly introduced and administered by the Centre before GST replaced it, so it was not a state exclusive levy either.

Common Pitfalls:
Candidates may confuse \"assigned\" or \"shared\" taxes with exclusive powers. Some central taxes are shared with States through the Finance Commission recommendations, which may give the impression that States levy them. The exam, however, focuses on who has the constitutional power to impose the tax. Another mistake is to answer with the present GST based system instead of the classical arrangement described in many standard textbooks. Always pay attention to the context of the question and the time frame implied.

Final Answer:
The tax that traditionally fell under the exclusive jurisdiction of the State Governments is sales tax on the sale of goods within the state.