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I presume Apple has changed the layout of iTunes Connect and the location where you add in-app purchases, so this is the screen where I add in-app purchase, however it tells me to Select it from the app’s In-App Purchases section and click Submit.
Which again I presume is the following area, which I can't see any where to submit in-app purchase: 
According to this question and it's answer, there should be an in-app purchase part but it is missing.
P.S. This is going to be the first submission for the app.
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Click the plus icon, select the most recent build (the highest build number), then add it. Click save at the top right. Make sure all other items are filled out for your app, including pricing, screenshots, etc. Once you have filled out everything, you will be able to click "Submit for review" at the top right.
You can only review apps and games you've downloaded. You can't leave a review from an enterprise account, like an account for work or school. If any account on your device is part of a beta program for an app, you can't leave a review for that app. You can leave a beta program if you want to write a review.
Restart the device Tap Power off or Restart (depending on your device this text may be different). If needed, hold down the power button again to turn the device back on. Wait for the device to start back up. Re-open the app or game and check if the in-app purchase has been delivered.
I'm not sure if this is going to be the case for everyone, however in my case what happened is as follows:
As I said, this might not be the case for everyone, maybe some people see that In-App Purchase section before being rejected. Only thing that's for sure is you have to select in-app purchase from a list before submitting the app.
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