The accident occurred last night when the jeep carrying eight persons from Shila fell into the gorge near Sheilghat under Jubbal area, 110km from here.
Five persons were killed on the spot, they said adding, two others died while being taken to hospital.
Out of the seven killed, four were identified as Deep Chauhan (38), Akshay (28), Pankaj (22) and Amit (23).
Police is yet to identify the two women who died on way to the hospital and one other person.
State Horticulture minister Narinder Bragata, who is also the local MLA, met the family members of the deceased and condoled them.
He said that bodies of all victims have been recovered and handed over to the family members.
The cause of the accident could not be ascertained but it is believed that foggy conditions and slippery roads led to the mishap, police said.