Paul provides the biblical terminology for this distinction. He calls law-keeping “works of law” (Romans 3:20, 28; Galatians 2:16) and describes the gospel response as “the obedience of faith” (Romans 1:5; 16:26). These are Paul’s own categories: works that attempt to earn salvation versus faith expressing itself through obedience to God’s commanded gospel response. This terminology comes from Jack Cottrell; see Grace Distinctions #4: Two Kinds of Commands at JackCottrell.com.
Law Commands reveal sin and guide holy living. Gospel Commands receive grace and enter us into Christ. This distinction resolves the objection that baptism constitutes works-righteousness—baptism is not a work that earns salvation but a Gospel Command that receives it.
Table 2. Law Commands vs Gospel Commands