Google Sheets – VLOOKUP must find a value in a list and if its equivalent

I have a problem where I am currently using a VLOOKUP function on this sheet. LINK

What I wanted was for VLOOKUP to look in the List column on G and compare it to column B and if it matches. It will return a value "y". The problem I've encountered is that he can not search a list.

If someone can help me. That would be great.