Deduction of output tax liability claimed on account of credit notes issued does not match with the corresponding reduction of input tax by the recipient? What is the procedure to be followed?

1. If the reduction in output tax liability claimed by the supplier does not match with the corresponding reduction of input tax by the recipient, then such discrepancy will be communicated to the supplier in FORM GST MIS-3 and to the recipient in FORM GST MIS-4 on or before the last day of the month in which such matching is carried out.
2. On receipt of such communication, either the supplier or the recipient can rectify the details so as to match the claim of reduction in output tax liability and corresponding reduction of input tax credit.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.42)