**Core Concept**
The distribution of revenue between the Centre and States is a crucial aspect of the Indian financial system, aimed at ensuring a stable and equitable allocation of resources between the federal government and state governments. This concept is rooted in the principles of federalism and the need to maintain a balance between the authority of the Centre and the autonomy of the States.

**Why the Correct Answer is Right**
The Finance Commission, established by Article 280 of the Indian Constitution, plays a pivotal role in this process. It is responsible for reviewing the financial position of the Centre and States, and recommending the distribution of tax revenues between them. The Commission's primary function is to ensure that the revenue is allocated in a manner that promotes economic development, social welfare, and fiscal discipline at both the national and state levels. The Commission's recommendations are binding on the Centre and States, and are implemented through the Finance Act.

**Why Each Wrong Option is Incorrect**
**Option A:** The Planning Commission, although responsible for formulating plans for economic development, does not have a direct role in distributing revenue between the Centre and States.
**Option B:** The Reserve Bank of India (RBI) is the central bank of the country, responsible for regulating the money supply, maintaining price stability, and managing the country's foreign exchange reserves. While the RBI has some influence on the Centre's revenue, it is not responsible for distributing revenue between the Centre and States.
**Option C:** The Goods and Services Tax (GST) Council, established under the GST Act, is responsible for making recommendations on GST rates, cesses, and other matters related to GST. However, it does not have a role in distributing revenue between the Centre and States.

**Clinical Pearl / High-Yield Fact**
The Finance Commission's recommendations have a significant impact on the fiscal policies of the Centre and States, and are an essential aspect of maintaining a stable and equitable financial system in India.

**Correct Answer: C. Finance Commission. It has the primary function of distributing the revenue between the Centre and States.**