India VAT Claim Function Doesn't Work

 Hi Folks, we have implemented India Localization; and are using AP, AR, GL, FA, iProc/PO, we only do expense purchasing for goods and services, we don't buy inventory items, nor we have defined any item for expense purchasing - the VAT online and Differed Claim doesn't work - Oracle Support has said that we have to classify for VAT,  but as I mentioned we haven't defined any item, we don't use Inventory....
My question, is the VAT Claim functionality only works if we use Inventory/or define item for all of our purchasing? and wondering if any one has Implemented India Localization without oracle inventory ... is there any work around, where we can use the VAT Claim functionality without items classification... any hint/tip assistant in this matter will be greatly appreciated...