No, the sub-contractor does not need to be paid any GST refund in this case. Here’s why:

How GST Works in Your Scenario
Sub-contractor to You

The sub-contractor does work worth ₹87.
Charges GST @18% on ₹87 → ₹15.66
Total invoice to you = ₹102.66
You pay ₹102.66 and claim an ITC of ₹15.66.

You to the Company

You bill the company for ₹100.
Charge GST @18% on ₹100 → ₹18
Total invoice to company = ₹118
The company pays you ₹118 and claims ITC of ₹18.
Your GST Liability Calculation

You collected ₹18 GST from the company.
You already paid ₹15.66 GST to the sub-contractor (claimed as ITC).
Your final GST payable to the government = ₹18 - ₹15.66 = ₹2.34.
Why No Refund for the Sub-Contractor?
The sub-contractor charges GST from you (₹15.66) and pays it to the government after adjusting any ITC they might have. Since they are not paying excess tax, there’s nothing to refund. Refunds typically happen when the input tax is higher than the output tax (like in an inverted duty structure), which is not the case here.

Everything flows correctly in the GST system:

The sub-contractor gets paid with GST and remits it to the government.
You claim ITC and pay the remaining GST.
The company claims ITC for the full amount.
So, no extra tax burden and no refund required! Hope this makes sense—let me know if you need any clarification.

If your gross receipts surpass this threshold in FY 2025-26, the tax audit will pertain solely to that specific financial year. Auditors typically do not examine records from previous years unless necessary to verify opening balances or address specific discrepancies. Therefore, the audit will focus on the financial records of FY 2025-26 and not extend to prior years.

It's advisable to maintain accurate and comprehensive records annually to ensure compliance and facilitate any necessary audits.

I hope this clarifies your query