Singapore has also ordered a recall of the Everest spice mix and advised against its consumption
The Krishna Sen Ichhuk Polytechnic Institute students were mostly between the ages of 16 and 20. Two teachers and the driver also died in the accident early on Friday evening near the remote town of Tulsipur in Dang district, according to the Indian Express.
The vehicle was carrying 37 people, police say. Twenty-two were killed at the scene, while another later died at a nearby hospital.
Police say speeding may have been the cause of the accident.
Road accidents are relatively common in Nepal because of poor roads, badly maintained vehicles and reckless driving, NDTV says.
The latest incident comes a week after a truck accident in central Nepal killed 20 mourners returning from a funeral service.