Greetings Alex, sorry this comment is several months after your original post, but I'm having difficulty getting a straight answer from my rep or support. We here at our organization have a O365 G3 subscription (as opposed to A3 or E3), which is just basically the Government Cloud equivalent to the E3. I have been unable to use the Azure AD Group-based licensing as the options either do not exist or are grayed out in my interface. Support says it's because I'm G3, but when I go and ask my rep, one of his coworkers says it REQUIRES Azure AD Basic, not even the O365 E3/A3 option is valid. (he even said the documentation is wrong on your own website). I'm just trying to get a straight answer, do you know if G3 can have it? If so, is there a reason why I would not have the options? Again sorry to ask this here, but this is the first actual post I've found from a Microsoft person that does state what I originally though it was with the ability to comment back.
Thanks for your time!