Your guess is correct. $GL_{n,f} $ applies $f$ to the entries. But this is not a problem, since the zero homomorphism is not a morphism in the category **Crng**. Namely each morphism $$g:R\to S$$ in this category, by definition fulfills $$ g(1_R)=1_S.$$ To see that $GL_{n,f}$ is well-defined, you can use the following:
1. An element $A\in GL_n(R)$ is invertible if and only if $det(A)\in R^*$
2. $det(GL_{n,f}(A))= f(det(A))$
3. Each ring homomorphism sends units to units
If you need more elaboration on any point, let me know.