The third generation wide bandgap (WBG) semiconductor materials exhibit a prominent role in various applications such as adapters, uninterrupted power supplies, smart grids, and electric vehicles (EVs). They have the phenomenal properties such as high critical breakdown field, WBG, and high-saturated drift velocity as compared to the silicon (Si). This article throws a light on the classification and recent advancements of the GaN-based power devices along with their structural features. Moreover, it explores the critical issues that degrade the device performance and also various methods to improve their performance. The recently developed commercial GaN devices are enumerated with their figure of merits (FOMs) comparison with the Si and SiC devices. The outrageous features of GaN devices are well utilized for realizing the high power density and high efficiency power converters in case of EV applications. The updated survey of various GaN devices-based ac-dc, dc-dc, and dc-ac converters is presented along with their salient features. This article also emphasizes the approaches for resolving the power module issues such as parasitics, layout, and thermal design other than the power converters. This review is ultimately helpful for the design engineers to abridge the technical gaps arising due to the power electronics barriers.