Philosophical doubt

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Lately I've been taking too much interest in philosophy, mostly ancient Indian philosophy. Somehow, I am now convinced about the principle of karma, and the cycle of life and death and of course, liberation of the soul.

The principle of karma says that one is rewarded and punished according to his deeds and that sooner or later (even in the next incarnation), one has to suffer the consequences of his deeds.

However, I feel that this concept (of karma) is a little counter intuitive. If you have read Bhagwat Gita, Lord Sri Krishna tells Arjuna that he will definitely win the war and that he (Arjuna) is just an instrument in the whole 'play' which has already been decided by the Lord.

Now, the question is that if everything is already decided, then isn't one's karma, also decided? If God has already decided what is to happen or what one has to do, then the individual cannot be held responsible (punished or even rewarded) for his karma.