Is the sentence "It is removed" grammatically correct?

It is removed is grammatically correct, but is not something people normally say. It sounds quite stilted.

The only context I can think of would be as a reply from a "right hand man" to his boss, if the right hand man was particularly well spoken:

Boss: This room is too cluttered. Remove this obelisk.

RHM: Yes sir.

(RHM gestures to minions. Minions remove the obelisk.)

RHM: It is removed.

A much more common idiom is it is [far] removed from X which implies the thing that it refers to is [very] different to X.

E.g.

This chaise longue is far removed from the stools of your hovel, eh?