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Unable to Pass Traffic via VPLS over GRE

Hi,

I have VPLS between 2 ASR920 routers running fine, can ping across the same Vlan from one Laptop to another.

 

When I turn off VPLS on the physical interface, instead bring up a GRE tunnel and configure VPLS on the GRE tunnel, I am unable to ping across the switches in the same Vlan.

 

1. Can ping Tunnel source to destination

2. Can ping between Tunnel IPs 

3. OSPF is up between routers, advertising the Loopbacks (Via the Tunnel)

4. LDP is up between both routers

 

Is there something that I am missing? I am using Firmware asr920-universalk9_npe.16.07.01.SPA.bin but I have also tried asr920-universalk9_npe.16.06.02.SPA.bin and asr920-universalk9_npe.03.18.03.SP.156-2.SP3-ext.bin with same results

 

Am I doing something wrong? Would appreciate some help with this.

 

Configs attached

 

 

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