This is a BUG in iOS 8. It started happening on my devices right after the iOS 8 update. I have spent hours working with the Genius staff at my local store and my Exchange host. We have totally isolated this down to a bug in iOS 8.
The "(GMT)" thing only shows up on appointments that were created on an iOS device and then synced to another iOS device. If I create an appointment on Outlook, it syncs down to ALL my iOS devices without the GMT transposition.
So what does this tell us:
1. The problem cannot be generated by the Server/Exchange Host. If it was, then an appointment created through Outlook would show up with the (GMT) thing on all the iOS devices that sync to that server. If the buggy data comes from the server, and all the iOS devices get their data from the server, then an appointment created on the server and synced down to the iOS devices would show up with the buggy data on all the devices. Instead the buggy (gmt) thing shows up on none of the iOS devices if an appointment is created on the server by a non-iOS device.
2. The (GMT) problem is generated only when an iOS device receives a Calendar appointment that was created by another iOS device. Non-iOS devices (i.e. Outlook) do not show the incorrect time or any (gmt) tag etc. This means that the original iOS device puts some sort of data into the appointment that only another iOS device can read. That's an iOS problem.
I am near certain this is generated by something having to do with the time zone override feature in iOS. I think it uses GMT as the reference timezone for all events and then depending upon how you set "time zone override" it then knows how to adjust the events based on whatever time zone you are in when you look at them. What's happening is that due to some bug in iOS8 it is making a conversion and displaying the (GMT) time even if you have the time zone override disabled.
It is astonishing to me that a bug of this magnitude made it through the extensive beta testing Apple did before releasing iOS 8. Even more astonishing is that Apple so far appears unwilling to address the issue even though there are widespread reports of it. Apple please take note: this is a deal-killer issue for corporate customers who's organizations use Exchange.
This is the sort of shoddy quality control, and "blame everyone else" approach I would expect using Android which is a major reason why I ditched Android for iOS a few years ago. If Apple is OK with sinking to the level of Android then it is no longer differentiated by quality control and support, and consumers should go back to simply comparing prices and hardware specs. Maybe Blackberry has a chance to get back a bunch of Apple customers?? Probably not, but Apple should think about this sort of thing.
This is incredibly disappointing.