Human Rights Watch spoke to 52 Rohingya women and girls who fled to Bangladesh, 29 of whom said they had been raped.
Myanmar has said the military clearance operation was necessary for national security after Rohingya militants attacked 30 security posts and an army base in Rakhine state on August 25.
"The humanitarian scale of this crisis is staggering", Tillerson said.
The 15-member council last week urged the Myanmar government to "ensure no further excessive use of military force in Rakhine state".
While the report acknowledged that battles against militants from the Arakan Rohingya Salvation Army, or ARSA, had left 376 "terrorists" dead, it also claimed security forces had "never shot at the innocent Bengalis" and "there was no death of innocent people". Less than one-third of the 1.1 million Rohingyas who lived in Myanmar a year ago are thought to remain in the country.
Myanmar military denies atrocities against Rohingya Muslims
Tillerson called for the Myanmar government to lead a credible and impartial investigation and said those who committed abuses should be held responsible. The accounts have been borne out by human rights investigators and, in the case of the villages, satellite evidence. "The Burmese authorities have once again shown that they can't and won't credibly investigate themselves". Patten said sexual violence was "being commanded, orchestrated and perpetrated by the Armed Forces of Myanmar".
A posting on Min Aung Hlaing's Facebook page said Myanmar's military supremo had explained to Tillerson the "true situation in Rakhine", the reasons why Muslims fled, how the military was working with the government to deliver aid and the progress made for a repatriation process to be agreed with Bangladesh.
But he said he was encouraged by talks between Myanmar and Bangladesh to agree on a refugee repatriation process.
The allegation in a report by the New York-based rights group echoes an accusation by Pramila Patten, the United Nations special envoy on sexual violence in conflict, earlier this week.
The International Organization for Migration reports that "desperate refugees are being recruited with false offers of paid work and. are willing to take whatever opportunities they are presented with, even risky, unsafe ones that involve their children", Dujarric said.
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