Illusion, which is in the form of universe or mind, is the veil over the consciousness, which is the true self. Mind or universe hides the consciousness, which is the true self. Mind or illusion is erupted from consciousness. Until one thinks the body as self he is bound to experience the illusion or universe as reality. Illusion is based on the individuality and full fear, attachments, dreams. Whatever experienced as an individual is all illusion. Without the individuality there is no illusion. From the ultimate perspective there is only the consciousness, which is the true self. Illusion or universe is the creation of consciousness and consciousness itself.
To know the universe is mere illusion one has to learn to view and judge the three states from the perspective of the formless substance and witness of the three states, which comes and goes. The witness is formless, apart and eternal. The freedom from experiencing the duality or illusion is possible only when one is able to witness the three states from nondual perspective.
There is no dividing line between mind, which is in the form of universe and the soul, which is in the form of consciousness, because illusion or universe is the veil over the consciousness, which is the true self.