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The 27-year-old singer was attacked a day after the Punjab government withdrew his security cover.
Deputy Superintendent of Police (Mansa) Gobinder Singh told PTI that several bullets hit Moosewala, who was in his jeep at village Jawahar Ke when he was attacked.
Mansa civil surgeon Dr Ranjeet Rai told reporters that Moosewala was brought dead at the civil hospital.
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“Satnam shri waheguru. Very shocking and very sad, a great artist and a wonderful human being, may god give the strengths to his family,” the comedian wrote.
Musician Vishal Dadlani called Moosewala an “authentic modern artist” and said his courage and legacy will never be forgotten.
“I only knew #SidhuMoosewala through his music, yet the news of his demise has cut deep. India has very few authentic modern artists. He was right on top of that list. I’m without words. He’s a legend, his voice, his courage & his words will never be forgotten. What a sad day!”
Shubhdeep Singh Sidhu, known as Sidhu Moosewala, was among 424 people whose security was withdrawn by the Punjab Police on Saturday.
He had fought on the Congress ticket from Mansa assembly seat in the recent assembly election and was defeated by AAP’s Dr Vijay Singla.
“Terrible news coming in from Punjab.. this is not right RIP #sidhumoosewala you legend! Angry and sad!” actor Karan Kundra tweeted.
Actor Himanshi Khurana wrote she was “speechless”.
“RIP brother,” she tweeted.
Actor Gautam Rode said he was “at a loss for words” while actor Zareen Khan dubbed his passing away as “absolutely devastating and shocking”.
Musician Armaan Malik also took to Twitter and said he was “shocked and devastated.”
“Terrible news. Extremely shocked to hear about #SidhuMoosewala May his soul rest in peace,” singer Harshdeep Kaur tweeted.
Popular TV host Rannvijay Singha called it a “shocking news” and wrote he could not believe Moosewala was no more.
Leaders of the Congress and other political leaders also expressed their shock and anger over the killing of Moosewala and attacked the AAP government for withdrawing his security cover.