Living beings are a manifestation of God’s two energies,
jīva śhakti,
the sentient soul energy, and
Maya,
the insentient material energy or matter. In the material realm, all life is a combination of both matter and soul. Matter by itself is insentient or lifeless, and the sentient soul needs a carrier body. Hence, both come together to form a living being.
Similarly, the entire creation is a manifestation of God’s energies. One cycle of creation lasts for 100 years of
Brahma
. Then the Supreme Lord starts the process of dissolution. The five gross elements merge into five subtle elements, which in turn merge into
ahankār.
Ahankār
goes back into
mahān,
which again unites with
prakṛiti
.
Prakṛiti
now resides inside the body of
Maha Vishnu
(another form of the Supreme Lord).  All the materially bound souls, which could not get liberated during this cycle of creation, also reside in God’s body. They remain unmanifested, waiting for the next cycle of creation.
When God decides to create, the entire cycle begins all over again (as explained in verse 7.4), and a new world comes into existence. Therefore, God is the source, the sustainer, and the resting place for the entire creation.