Speaker K Sivaprasad Rao announced the action after Legislative Affairs Minister Y Ramakrishnudu moved a resolution to this effect.
The suspended MLAs (as also other members of the party) continued to be in the Well of the House despite appeals to vacate the House by the Speaker, who then summoned Marshals.
The MLAs, who raised slogans against the Speaker, refused to relent and were bodily lifted and taken out.
Taking exception to the suspension decision, Leader of Opposition Y S Jaganmohan Reddy said if one verified the last five minutes of his speech, it would be clear that he was speaking on issues of public interest.
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The Speaker told Reddy not to "twist facts" and pointed out that discussion on budget could not even be taken up in the last three days.
In protest against the Speaker's action, all YSR Congress members staged a walk-out.
Speaking later, Deputy Chief Minister K E Krishnamurthy defended the suspension, noting that those YSR Congress members were "abusing" the Chair.