The toll was set to rise as over 50 passengers were travelling in the two buses hit by the landslide which was triggered by a cloud burst, they said.
"Twenty seven bodies have been recovered, and of these thirteen have been identified," an official said.
Teams of the National Disaster Response Force (NDRF), the Army and the police were rushed and heavy earth-moving machinery deployed at the gorge where the two buses lay buried under a heap of debris.
He said that eight passengers were travelling in the Manali-Katra bus of which three lost their lives while five were rescued and admitted to the zonal hospital in Mandi.
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There were around 47 passengers in the second bus which was on its way from Manali to Chamba, an official said.
The chief minister said the state government would bear medical expenses of the injured passengers. He also met the bereaved family members and expressed condolences.
Health Minister Kaul Singh Thakur, Transport minister G S Bali and Rural Development and Panchayati Raj minister Anil Sharma also reached the spot.
The massive landslide, covering an area of more than 250 metres, swept away two other vehicles also and damaged some houses.
The highway was closed and hundreds of vehicles were stranded on either side, officials said.