In April 2004, three years after his retirement from the election commission, he was elected to the Rajya Sabha from Punjab as a representative of the
Indian National Congress. He was re-elected in 2010 and continued to serve as its member until the completion of his tenure on 9 April 2016. During his two terms, he served on parliamentary committees covering agriculture, external affairs, civil aviation, food and consumer affairs, urban development, chemicals and fertilisers, medical education, and security. He was President of the India–Poland Parliamentary Friendship Group from September 2007, and served on the Board of the Institute of Democracy and Electoral Assistance (IDEA) in Stockholm and the International Centre for Democratic Transition (ICDT) in Budapest. Following the Congress Party’s victory in the 2009 Indian election, he was re-inducted into the council of ministers and held cabinet rank in the second term. He continued to serve as the minister of Youth Affairs and Sports. During his tenure as Sports Minister, he re-established formal national conferences of State Sports Ministers, the first being held on 9 July 2008, to align state and central sports policy. He launched the Panchayat Yuva Krida Aur Khel Abhiyan (PYKKA) scheme to provide basic sports facilities at the grassroots level throughout the country. He brought the Indian Olympic Association and National Sports Federations under the purview of the Right to Information Act, confirmed by the Delhi High Court on 7 January 2010. He introduced mandatory annual recognition procedures for National Sports Federations and required them to hold free, fair and transparent elections. The budgetary allocation of the Sports Authority of India was doubled from Rs. 160 crore in 2009–10 to Rs. 321 crore for 2010–11. It was during this tenure that India hosted the
2010 Commonwealth Games in New Delhi. The games, signed in 2003 had been mired in controversy and allegations of corruption against Suresh Kalmadi and other prior organisers. Gill was brought in at a later stage to try and resolve the various concerns and prepare the stadiums and other facilities in time for the games. As a Member of Parliament, Gill extensively utilised his MPLAD funds on the development of educational institutions across Punjab, with an emphasis on girls education, particularly in the remote border districts. Among major universities that received grants from his MPLAD funds were Punjab Agricultural University, Ludhiana (for the extension of the Dr Amrita Pritam girls' hostel block)
, Guru Nanak Dev University, Amritsar (for the Asian Study Centre building which is now the School of Social Sciences), the Sahir Ludhianvi Library at Panjabi Bhawan, Ludhiana,
SCD Government College, Ludhiana (for the building and expansion of the Amrita Shergill Girl's Hostel on it's premises),
Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana (for their girls' hostel) and SGAD Government College, Tarn Taran. He served as chief of the parliamentary committee for the development of Amritsar airport, successfully working to secure an Amritsar–Sharjah flight and contributing to the overall development of
Sri Guru Ram Dass Jee International Airport. He campaigned for the installation of an 18-foot bronze statue of Bhagat Singh outside Parliament House, New Delhi, unveiled on 15 August 2008, and advocated for it to depict Bhagat Singh wearing a turban instead of a hat, a choice that generated public debate. He also arranged for statues of Punjab heroes to be placed across the state, including
Flying Officer Nirmaljit Singh Sekhon, the only Indian Air Force recipient of the
Param Vir Chakra. == Mountaineering ==