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All states of consciousness can only be realized in a gross body on Earth,  hence the importance of either reincarnation or incarnation into a body.

The oversoul resides in the subtle or mental state.  It is a whole soul that is ready to traverse the inner planes of consciousness.  It is formless. Only with the human body does it take form - as an entity. Entity is the marriage of the formless with the form.  As the oversoul incarnates in the human body it has no karma as it is here to do selfless service. That is not to say it cannot accru karma but the slate is wiped clean.  The oversoul through selfless service gives its involution a spiritual push. Some oversouls are God-realized and some are not.  

It is a divine romance and GOD is the beloved and the lover and you are GOD.