Question: Initially the soul is considered to be qualitatively similar to the Supersoul. So when we are born in this material world, what is it that enjoys/suffers the karma, is it the soul? If the soul does not experience any kind of happiness or distress, if it is only in relation to the material body that is acquired, then how does karma play an important role in our next birth?
Answer by Romapada Swami: We have discussed this dilemma of how the soul suffers or enjoys at some length in previous Digests (Please see Digest 2G Question 2, Digests 131 and 135).
At the time of quitting the gross body, the soul is carried by the subtle body (consisting of mind, intelligence and false ego) to its next destination. The impressions of one’s previous desires and the consequences of one’s actions (karma) are coded in the subtle body which determine one’s next life.
As discussed previously, the soul apparently experiences happiness and distress only due its attachment to its false identities in the bodily conception of life. Because of this attachment only, one continues to carry the subtle body, and along with it all of one’s accrued karma, birth after birth. The moment one detaches oneself from this false identification and reinstate oneself in pure devotional service to Krishna, all of one’s accrued karma as well as the subtle body are dissolved.
One final point: the subject of the source of suffering in discussed in the Uddhava-gita section of Srimad Bhagavatam Canto 11, Chapter 23. You can read this in Vedabase if you do not have a copy of Srimad Bhagavatam in your home.