The actor, who has been giving hints about his look in the upcoming project with different styles of beards, started shooting for the film on Thursday, said a source close to the actor. However, the filming location has not been revealed.
For the film, Shahid went all the way and opted for a beard, and recently shared his new look with a slick moustache on Twitter.
"Rangoon " is a love story based in the 1940s, against the backdrop of World War II. It also stars Saif Ali Khan and Kangana Ranaut.
Bhardwaj has earlier delivered hit films like "Kaminey " and "Haider " with Shahid, and perhaps "Rangoon " will recreate the magic at the box office.
Meanwhile, Shahid's last box office outing with "Shaandaar " turned out to be a damp squib.