If the Lord is transcendental, how can He become involved in the material creation?
Although the Lord is involved in creation, maintenance, and destruction of the universe through His different potencies, at the same time, he is transcendental. This can be dificult to understand.
In the classical Indian systems of philosophy, two common ideas about the nature of the Lord are monism and dualism. Monist philosophers believe that everything is one, everything is Brahman, and there is nothing apart from Brahman. In the philosophy of Sankaracarya, for example, it's said that the souls are just parts of Brahman that become covered by Maya. Once this illusory covering is removed, we become one again. Dualist philosophers believe there is a difference between Brahman and the individual souls, as well as the material energy, and explain the existence of the universe through the combination of these different forces. In dualism, Brahman is not Supreme, because other forces are separated and independent.
All the Vaishnava acaryas disagreed with both monism and dualism, accepting that the Lord has multiple potencies, which are simultaneously one and different from Him.
The philosophy of Ramanujacarya is called Visistadvaita-vada (non-dualism with distinctions, or purified monism); the philosophy of Madhvacarya is called Suddha-dvaitavada (purified dualism); the philosophy of Vishnusvami is called Suddhadvaita-vada (purified monism), and the philosophy of Nimbarka is called Dvaitadvaita-vada (monism and dualism, oneness and difference). There are differences in their presentations, but they all agree on the essential points. Sri Caitanya Mahaprabhu offered the perfect explanation of this concept in his Acintya-bhedabheda-tattva philosophy, explaining how the Lord and his energies are inconceivably one and different.
Therefore, although the Lord is involved in all steps of the creation, maintenance, and destruction of the universe through His different potencies, at the same time, he is transcendental. Because these two points are simultaneously true, they can be dificult to understand.
In the 3rd canto of Srimad Bhagavatam, Vidhura asks: If the Lord is transcendental, how can He become involved in the material creation? This is answered by Maitreya.
We can divide their dialogue into three parts:
1- The Supreme Personality of Godhead is pure, spiritual, and unchangeable. Being so, how is it possible that He can be connected with the three modes of nature and their activities, getting involved in the creation of the universe and different activities inside the material universes in His different incarnations? People get involved in material activities due to desire, but it is not possible that the Lord may have such material desires because He is self-satisfied and detached.
Maitreya's answers: "Certain conditioned souls put forward the theory that the Supreme Brahman, or the Personality of Godhead, is overcome by illusion, or māyā, and at the same time, they maintain that He is unconditioned. This is against all logic." (SB 3.7.9)
Mayavadis and others argue that the Lord falls into Maya when he comes to this material world as an incarnation, while at the same time defining Brahman as transcendental. Maitreya argues that this is against all logic. In the first canto, it was already stated that Vyasadeva saw the Lord and the material energy in his meditation, and the material energy was completely under His control. There is no possibility of the Lord being overpowered by his own illusory energy, just like a person can't drown in a cup of water.
The Lord is completely transcendental to the illusory energy and the material creation. He doesn't desire anything from here. He creates the material manifestation simply to give a chance to His parts and parcels to practice devotional service and re-attain their eternal spiritual position. When He comes in His different incarnations, He appears in His eternal spiritual form and performs His transcendental pastimes. He doesn't at any time become involved with the illusory energy.
2- How can the spirit soul, who is by nature transcendental and full of knowledge and bliss, fall into illusion? In other words, how can the pure soul leave the association of Krsna and become a conditioned soul covered by ignorance?
Maitreya answers: "The living entity is in distress regarding his self-identity. He has no factual background, like a man who dreams that he sees his head cut off. As the moon reflected on water appears to the seer to tremble due to being associated with the quality of the water, so the self associated with matter appears to be qualified as matter." (SB 3.7.10-11)
One may dream that he is seeing his head being cut off, but this is simply due to his delirious state. In reality, this is an impossible situation. The eyes are situated in the head, so it's impossible for one to see his own head being cut out.
Similarly, the material sufferings of the soul appear only due to ignorance, in identification with the body. In reality, these are illusory situations. The soul never dies, but when we identify with a material body, we think we are dying. The soul is full of knowledge, but by identifying with the body, we identify with the ignorance of the body and forget our original transcendental knowledge. The soul is by nature full of bliss, but due to identification with the body, we experience suffering. In reality, it is only the body that dies, that is in ignorance, and that suffers, but because we identify with the body, we experience all these things.
To better explain this point, Maitreya offers the example of the moon being reflected in a pond of water. Although the moon in the sky is fixed and doesn't tremble, because the water trembles, the reflection of the moon also appears to tremble.
When the consciousness of the soul is reflected in matter, it appears to assume the qualities of matter, such as ignorance, but this association is not factual. In his purport, Prabhupada emphasizes the word pratīyate, which means “apparently” and “not actually” (like the experience of having one’s head cut off in a dream). He mentions that "the living entities appear to be tainted by material qualities like illusion, lamentation and miseries, although in the pure soul such qualities are completely absent."
When a soul is associated with the modes of passion and ignorance, the quivering of the reflection on the water is more intense, and when a soul is associated with the mode of goodness, the quivering becomes less, just like the moon reflected in a lake on a day without wind. When the soul finally recovers his transcendental position, the association with the pond of water completely ceases. This example also describes the transcendental position of Krsna, who, just like the original moon, never comes in contact with the water.
How can we get rid of this false identification? The solution is, of course, the process of devotional service:
"But that misconception of self-identity can be diminished gradually by the mercy of the Personality of Godhead, Vāsudeva, through the process of devotional service to the Lord in the mode of detachment. When the senses are satisfied in the seer-Supersoul, the Personality of Godhead, and merge in Him, all miseries are completely vanquished, as after a sound sleep.
Simply by chanting and hearing of the transcendental name, form, etc., of the Personality of Godhead, Śrī Kṛṣṇa, one can achieve the cessation of unlimited miserable conditions. Therefore what to speak of those who have attained attraction for serving the flavor of the dust of the Lord’s lotus feet?" (SB 3.7.12-14)
In his purport, Srila Prabhupada explains the processes of Sadhana-bhakti and Raga-bhakti (or Raganuga Bhakti). The first is the process of practicing devotional service with our present senses under the regulations of the recognized scriptures. This is the process we have to follow until we become liberated. After liberation, one may start the process of Raga Bhakti, in which the mature devotee automatically takes to the various services of the Lord out of sincere attachment.
3- Paramatma is always with the soul, always present in the heart, and accompanying the soul from one body to the other. Why are the living entities subjected to so many miseries and misfortunes despite the Lord’s presence in their hearts as the Supersoul?
The answer to this third question is also given in the previous verses. Although the Lord is present in the hearts, He doesn't interfere with the material activities of the soul, acting as a neutral witness. The Lord is not responsible for the miseries of the soul, He just creates the conditions for the soul to act according to his desires. However, when one desires to become free from material illusion, the Lord helps in all aspects.