Need help with understanding GPU instancing

I need help with understanding GPU instancing in Unity as it’s really not that intuitive.
I am using Unity-2022-3-LTS.18f1 HDRP.

I want to create many instances of grass blades etc. for my random generated world and put them on faces of terrain mesh.

For that I thought that Graphics.RenderMeshIndirect would be sufficient. It went okay up until I figured out that this applies only to unlit shader and when trying to transfer my shader to surface shader I came across many issues, mainly because it’s not supported in HDRP?

So my question is:

Is is really not possible to create instanced grass that reacts to light in HDRP?

@andrew-lukasik Well i don’t think that Shader graph supports GPU instancing but i might be wrong, thanks anyway