The problem of relevant and diverse subset selection has a wide range of applications, including recommender systems and retrieval-augmented generation (RAG). For example, in recommender systems, one is interested in selecting relevant items, while providing a diversified recommendation. Constrained subset selection problem is NP-hard, and popular approaches such as Maximum Marginal Relevance (MMR) are based on greedy selection. Many real-world applications involve large data, but the original MMR work did not consider distributed selection. This limitation was later addressed by a method called DGDS which allows for a distributed setting using random data partitioning. Here, we exploit structure in the data to further improve both scalability and performance on the target application. We propose MUSS, a novel method that uses a multilevel approach to relevant and diverse selection. We provide a rigorous theoretical analysis and show that our method achieves a constant factor approximation of the optimal objective. In a recommender system application, our method can achieve the same level of performance as baselines, but 4.5 to 20 times faster. Our method is also capable of outperforming baselines by up to 6 percent points of RAG-based question answering accuracy.