GWT panels and widgets allow for building GUI applications. There are simple and complex panel types that lay out widgets in different ways. Widgets display information and enable user interaction. Common widgets include labels, buttons, text fields, combo boxes, radio buttons, and date pickers. Widgets are instantiated, configured with properties, and added to panels or forms. For example, a simple form can be created by instantiating text field and button widgets, setting their properties, and adding them to a form panel.