According to a party spokesman, Gupta, a former state vice-president, was expelled from the primary membership of the party with immediate effect.
The decision was taken by the BJP's state president and MP, Jugal Kishore Sharma, after consulting the party high command, he said.
"The decision to expel Gupta has been taken keeping in view the indiscipline as he is contesting election against official candidate of the party from Udhampur constituency," said Balbir Ram Rattan, state BJP spokesman.