1. The concept of Matching forms the backbone of ITC (Input Tax Credit) under the GST regime. According to this concept, ITC of the recipient for inward supply to be accepted only if the corresponding outward supply of supplier is matched.
2. Section 42 of the CGST Act prescribed the procedure for matching the outwards liability & Input Tax Credit thru filing of GSTR 1, GSTR 2 & GSTR 3. According to this section , the details of every inward supply furnished in GSTR 2 shall be matched with corresponding details of outward supply furnished in GSTR 1 of the corresponding supplier.
Source Taxguru
