Whether the credit note issued by the supplier has to be matched with the corresponding reduction of input tax by recipient?

1. As per Section 43 of the CGST Act, the details of credit notes issued by the supplier in respect of outward supply and claimed as reduction in output tax liability has to be matched with a corresponding reduction of input tax by the recipient of the supply.
2. Further, the credit note issued shall also be matched for duplication of reduction of output tax liability.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.40)