The O2 sensor is there to give the engine management system information about the combustion gas so it can adjust the fuelling to provide close to the 'perfect' air/fuel mix, mostly I think when cruising. If you haven't got a sensor the management system simply provides a mix based on the engine map in it's little brain. No worries so far
If you run a 1100S engine in a 1100GS I would think you need to consider two things:
1) The cat will be slightly more restrictive than an open pipe and therefore, without the feedback from an O2 sensor, you may be running a bit richer than you would like
2) the map in your engine management system set up for a GS and not an S, though I've no idea what differences are. Isn't there something about changing a link in a plug for one of the right type to alter maps between 1100's?