I read few posts online but I have not understood what is the difference between them. Could anybody please clarify ?
Many of these answers are wrong. Actually, the question itself is slightly wrong.
The two kinds of app are Desktop Apps and Modern UI Apps (what used to be called Metro apps.) Both kinds can go into Store.
Desktop Apps look like the old kind. They aren't fullscreen, they run in the desktop area, they don't have to have a user interface (so services are desktop apps,) et cetera.
Modern UI Apps are the new kind. They're fullscreen and snap, blah blah.
Modern UI Apps have a lot of new requirements. They have to declare what file types they handle. They aren't allowed to save as *. Some obscurer older APIs are shut off for them, which can be a problem for people trans-compiling from older languages. They aren't allowed to declare the quiet read flag for the documents folder.
But practically speaking, you aren't going to see a whole lot of difference between the two, unless you're doing weird stuff, other than the fullscreen-vs-windowed bit.
Non-commercial accounts aren't allowed to use the desktop UI.
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