The Interior Ministry spokesman Nusrat Rahimi confirmed the casualties and said the blast was a suicide bombing.
He said the explosion happened at around 10:40 pm on Saturday.
Sources and eyewitnesses said the hall was packed with guests when the explosion happened.
The Shahr-e-Dubai wedding hall is located in police district 6 (PD6) which covers areas like Faiz Mohammad Katib Road and Char Qala-e-Char Dehi area.
Footage on social media shows women screaming outside the wedding hall, while they are shocked by the explosion.
Sources said the casualties might be high.
Wedding ceremonies in Afghanistan are often attended by more than 400 guests.
Taliban in a statement rejected any involvement in the attack and said they condemn the incidents which target women and children.