The distinction between the jīva and the īśvara will be explained in the Thirteenth Chapter of Bhagavad-gītā. The Lord is kṣetra-jña, conscious, as is the living being, but the living being is conscious of his particular body, whereas the Lord is conscious of all bodies. Because He lives in the heart of every living being, He is conscious of the psychic movements of the particular jīvas. We should not forget this. It is also explained that the Paramātmā, the Supreme Personality of Godhead, is living in everyone's heart as īśvara, as the controller, and that He is giving directions for the living entity to act as he desires. The living entity forgets what to do. First of all he makes a determination to act in a certain way, and then he is entangled in the actions and reactions of his own karma. After giving up one type of body, he enters another type of body, as we take off and put on clothes. As the soul thus migrates, he suffers the actions and reactions of his past activities. These activities can be changed when the living being is in the mode of goodness, in sanity, and understands what sort of activities he should adopt. If he does so, then all the actions and reactions of his past activities can be changed. Consequently, karma is not eternal. Therefore we stated that of the five items (īśvara, jīva, prakṛti, time and karma) four are eternal, whereas karma is not eternal.
The supreme conscious īśvara is similar to the living entity in this way: both the consciousness of the Lord and that of the living entity are transcendental. It is not that consciousness is generated by the association of matter. That is a mistaken idea. The theory that consciousness develops under certain circumstances of material combination is not accepted in the Bhagavad-gītā. Consciousness may be pervertedly reflected by the covering of material circumstances, just as light reflected through colored glass may appear to be a certain color, but the consciousness of the Lord is not materially affected. Lord Kṛṣṇa says, mayādhyakṣeṇa prakṛtiḥ (BG 9.10). When He descends into the material universe, His consciousness is not materially affected. If He were so affected, He would be unfit to speak on transcendental matters as He does in the Bhagavad-gītā. One cannot say anything about the transcendental world without being free from materially contaminated consciousness. So the Lord is not materially contaminated. Our consciousness, at the present moment, however, is materially contaminated. The Bhagavad-gītā teaches that we have to purify this materially contaminated consciousness. In pure consciousness, our actions will be dovetailed to the will of īśvara, and that will make us happy. It is not that we have to cease all activities. Rather, our activities are to be purified, and purified activities are called bhakti. Activities in bhakti appear to be like ordinary activities, but they are not contaminated. An ignorant person may see that a devotee is acting or working like an ordinary man, but such a person with a poor fund of knowledge does not know that the activities of the devotee or of the Lord are not contaminated by impure consciousness or matter. They are transcendental to the three modes of nature. We should know, however, that at this point our consciousness is contaminated.
When we are materially contaminated, we are called conditioned. False consciousness is exhibited under the impression that I am a product of material nature. This is called false ego. One who is absorbed in the thought of bodily conceptions cannot understand his situation. Bhagavad-gītā was spoken to liberate one from the bodily conception of life, and Arjuna put himself in this position in order to receive this information from the Lord. One must become free from the bodily conception of life; that is the preliminary activity for the transcendentalist. One who wants to become free, who wants to become liberated, must first of all learn that he is not this material body. Mukti, or liberation, means freedom from material consciousness. In the Śrīmad-Bhāgavatam also the definition of liberation is given. Muktir hitvānyathā-rūpaṁ svarūpeṇa vyavasthitiḥ: (SB 2.10.6) mukti means liberation from the contaminated consciousness of this material world and situation in pure consciousness. All the instructions of Bhagavad-gītā are intended to awaken this pure consciousness, and therefore we find at the last stage of the Gītā's instructions that Kṛṣṇa is asking Arjuna whether he is now in purified consciousness. Purified consciousness means acting in accordance with the instructions of the Lord. This is the whole sum and substance of purified consciousness. Consciousness is already there because we are part and parcel of the Lord, but for us there is the affinity of being affected by the inferior modes. But the Lord, being the Supreme, is never affected. That is the difference between the Supreme Lord and the small individual souls.
What is this consciousness? This consciousness is "I am." Then what am I? In contaminated consciousness "I am" means "I am the lord of all I survey. I am the enjoyer." The world revolves because every living being thinks that he is the lord and creator of the material world. Material consciousness has two psychic divisions. One is that I am the creator, and the other is that I am the enjoyer. But actually the Supreme Lord is both the creator and the enjoyer, and the living entity, being part and parcel of the Supreme Lord, is neither the creator nor the enjoyer, but a cooperator. He is the created and the enjoyed. For instance, a part of a machine cooperates with the whole machine; a part of the body cooperates with the whole body. The hands, legs, eyes, and so on are all parts of the body, but they are not actually the enjoyers. The stomach is the enjoyer. The legs move, the hands supply food, the teeth chew, and all parts of the body are engaged in satisfying the stomach because the stomach is the principal factor that nourishes the body's organization. Therefore everything is given to the stomach. One nourishes the tree by watering its root, and one nourishes the body by feeding the stomach, for if the body is to be kept in a healthy state, then the parts of the body must cooperate to feed the stomach. Similarly, the Supreme Lord is the enjoyer and the creator, and we, as subordinate living beings, are meant to cooperate to satisfy Him. This cooperation will actually help us, just as food taken by the stomach will help all other parts of the body. If the fingers of the hand think that they should take the food themselves instead of giving it to the stomach, then they will be frustrated. The central figure of creation and of enjoyment is the Supreme Lord, and the living entities are cooperators. By cooperation they enjoy. The relation is also like that of the master and the servant. If the master is fully satisfied, then the servant is satisfied. Similarly, the Supreme Lord should be satisfied, although the tendency to become the creator and the tendency to enjoy the material world are there also in the living entities because these tendencies are there in the Supreme Lord who has created the manifested cosmic world.