Amid prayers and a 21-gun salute, Mr Gujral's body was consigned to flames at Smriti Sthal on the banks of Yamuna. The last rites were performed by his two sons, including Akali Dal MP Naresh Gujral, and grandson.
The cremation was attended among others by President Pranab Mukherjee, Prime Minister Manmohan Singh, Vice-President Hamid Ansari, UPA Chairperson Sonia Gandhi, Defence Minister AK Antony, Home Minister Sushil Kumar Shinde and BJP leaders LK Advani and Arun Jaitley.
Gujral's body, draped in the Tricolour, was brought to Smriti Sthal from his 5 Janpath residence in a gun-carriage accompanied by military personnel and close family.
Gujral died in Gurgaon, on the outskirts of Delhi, on Friday. He would have turned 93 on Dec 4. Mr Gujral had been on dialysis for over a year; he was admitted to hospital on Nov 19 with a lung infection.
The man led a rickety coalition in the late 1990s during a turbulent political time for the country. He was known for his Gujral Doctrine, which proposed closer ties between India and its neighbours. He also opened dialogue with Pakistan despite its prickly attitude towards India. Mr Gujral was also foreign minister twice.