The victim, identified as Mohammed Afrazul, was a migrant from West Bengal's Malda district and was working in Rajsamand as a contract labourer.
The police said that the suspect, in a series of videos, is seen making inflammatory and communal statements.
In the video, Raigar is seen striking Afrazul with an axe, dousing him with petrol and setting him ablaze before fleeing the scene.
Home minister Gulabchand Kataria condemned the incident and said that the investigation has been handed over to SIT for further investigation.
The accused -who was arrested, according to News18 on Thursday-had shot a video of the act and uploaded it on social media.
Bitcoin exchange NiceHash loses millions to hackers
The statement said, "Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days". NiceHash previously announced that it was "under maintenance", a message that it had posted to its official website as well.
After brutally killing the man, Regar is heard saying, "Those who support or are part of this "Love Jihad" will be met with the same fate", referring to a term derived and widely used by Indian right-wing Hindu groups.
Police in the western Indian state of Rajasthan have arrested a man who allegedly hacked another man to death and set him alight before sharing video of the apparent religious attack.
The police at first had received information about the semi-burnt body of a man being found. The content of the video will make infuriated and will explain all the wrong reasons for which it is trending. The incident took place in Rajasthan's Rajsamand district and the video has gone viral.
The most famous case in recent times of the so-called "love jihad" is that of Hindu woman Akhila Ashokan from Kerala whose parents moved court to annul her marriage to her Muslim husband.
Police found a motorcycle, scooty, axe, bottle of petrol and a half-burnt Aadhaar card on the spot.