"We have decided to declare the film tax-free," said Manoj Shrivastava, principal secretary, commercial taxes and culture.
The film producers had applied for tax-free status.
The producers said in a release that after Uttar Pradesh, Hawaizaada had now been declared tax-free in Madhya Pradesh as well.
Presented by Reliance Entertainment, the film is directed by Vibhu Puri and stars Ayushmann Khurrana, Pallavi Sharda and Mithun Chakraborty.