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Welcome to Marketo Ashish,
Group Lists are static lists and Group Smart Lists are dynamic. You can read a bit more about them here: Smart Lists and Lists - Marketo Docs - Product Docs.
Think of a group list as a group of leads from a list upload or event attendee list. Think of a smart list as a group of leads that meet a certain criteria (ex. have a score above 10; so it is always changing as it picks up and drops off leads that qualify).
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A smart list is dynamic in that it will be updated in real time every time it is called. It is in fact a set of filters that run against the database and get the latest and greatest audience in real time.
A Group List is what you would traditionally refer to as a list. It is static in nature in that you update the list at a point in time and the list stays the same until you explicitly change it by adding or deleting names from it