Can we add conditions for the create transition while creating a work item in jira?
No. A condition prevents a transition from being offered to the user, based on information on the issue and the users profile (and other stuff sometimes). On create, there's no issue to work with, so there's nothing to apply a condition to.
Permissions to create are what you need to look at, and then you can apply validators to make sure the users don't put rubbish in.
I'm trying to basically assign the issue to different groups depending on a field value entered in the create screen. I want to implement this at the time of creating a work item.
That has nothing to do with conditions.
Post-functions update data on an issue during a transition, have a look at those.
(Although you can't do "assign to a group" anyway, so that's not going to happen)
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