A value of type T a with a different from Bool can never have the form T1 x (since that has only type T Bool).
Hence, in such case, the T1 x branch in the case becomes inaccessible and can be ignored during type checking/inference.
More concretely: GADTs allow the type checker to assume type-level equations during pattern matching, and exploit such equations later on. When checking
f :: T a -> a -> a
f x y = case x of
T1 x -> True
T2 -> y
the type checker performs the following reasoning:
f :: T a -> a -> a
f x y = case x of
T1 x -> -- assume: a ~ Bool
True -- has type Bool, hence it has also type a
T2 -> -- assume: a~a (pointless)
y -- has type a
Thanks to GADTs, both branches of the case have type a, hence the whole case expression has type a and the function definition type checks.
More generally, when x :: T A and the GADT constructor was defined as K :: ... -> T B then, when type checking we can make the following assumption:
case x of
K ... -> -- assume: A ~ B
Note that A and B can be types involving type variables (as in a~Bool above), so that allows one obtain useful information about them and exploit it later on.