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All the info you´re after (and many other important and interesting one) may be found here:
https://www.gtplanet.net/forum/thre...our-on-gts-online-races.375408/#post-12231703
This is about correct overtaking and correct behaviour on Racing... and Of course that GTS Penalization system has nothing to do with it....
Good read that. I think the key rule here is:
Overtaking
O-1: To obtain right of road position in a corner, the overtaker's car must have substantial overlap of the car that is being overtaken, before they reach the corner's turn-in point. Should the overtaking car not have enough overlap, the leading car may resume its racing line without fear of contact.
That "substantial" part is what I feel GTS gets wrong on too many occasions.
Watch the exact issue here although in this case the penalty goes to the outside car:
And then more weirdness here:
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