On an affiliated Telegram channel, the local branch of ISIL said the attack was carried out by them.
The group said a suicide attacker stormed the temple on Saturday morning armed with a machine gun and hand grenades after killing its guard.
Grey smoke billowed over the area in images aired by domestic broadcaster Tolo. A Taliban interior spokesman said attackers had laden a car with explosives but it had detonated before reaching its target.
A temple official, Gornam Singh, said there were around 30 people inside the building at the time.
A spokesman for Kabul's commander said one Sikh worshipper had been killed in the attack and one Taliban fighter was killed as his forces took control of the area.
ISIL has claimed some attacks in recent months.
Saturday's explosion followed a blast at a mosque in the northern city of Kunduz the previous day that killed one person and injured two, according to authorities.
ZZ/PR