The decision comes in the wake of Sushant's outburst against the leadership "promising to expose the Madhu Kodas and Rajas in the state government".
During the recent visit of senior leader L K Advani to Dharamsala for an IPL match, the state party leadership reportedly told him about the development.
Party sources said that Advani, however, was of the view that as Assembly elections in the state were due next year, it would not be proper to suspend the MP from the primary membership of the party.
Sushant, on the other hand, has said, "Removing me from the BJP state executive is good news for me. I am already in the field for the welfare of the people and does not bother about any action. Public will reply."
The Kangra MP was reacting after State BJP chief Khimi Ram issued the order for his removal from the BJP state executive, on Monday.
Sushant earlier alleged there are many Kodas and Rajas in Himachal and announced he would make their name public at the right time.
Infighting in Himachal BJP started when Sushant bycotted the CM's programme in his area earlier this year.