I want to make a IOS device act as a virtual Ibeacon and configure it to google proximaty API.
When I try to configure using google beacon tools. I get "eddystone configuration not supported by the beacon"
Can any one help me to understand on what basis Google says Ibeacon is supported for nearby notifications
Yes, you can use Google's Beacon Tools app to register a virtual iPhone iBeacon transmitter with Google's servers. The problem is that you are misunderstanding the meaning of that error message.
To clarify: The question shows a screenshot of an Android app that has scanned for an iBeacon transmission coming from an iOS device.
Provisioning shows "Eddystone configuration service not supported by this beacon" because that section is used for configuring the beacon over bluetooth using the Eddystone configuration GATT service standard. Because your iPhone doesn't support that GATT service (lots of beacons don't -- not just virtual beacons), you get that error message.
Don't worry, that section is optional.
Just skip it and go down to the next section labelled Registration.