The bus was on its way to Paonta from Thontha Jakhal when it fell into the 200-metre deep gorge in Shillai area of Sirmaur district, Deputy Commissioner B C Badalia said.
Police said the cause of accident could not be known immediately and a magisterial inquiry under SDM Paonta H S Rana has been ordered into it.
Police personnel, a team of doctors and medical staff immediately rushed to the spot. Assisted by locals, police launched a rescue operation and recovered the bodies, he said.
Paonta DSP Bhushan Thakur said the bodies were handed over to the families after postmortem.
The injured were taken to the Civil Hospital at Paonta Sahib where the condition of 10 of them is stated to be critical. Chief Medical Officer Dr Sanjay Sharma is supervising their treatment, police said.
One injured person has been referred to PGI Chandigarh while three others were shifted to District Hospital at Nahan, they said.
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