This is indeed an official use stamp from Gwalior State.
Gwalior was one of six States that entered a Postal Convention with British India around 1885, under which the States agreed to use British Indian stamps overprinted for the individual States. Gwalior was the largest and most important of the States, and was the only one allowed to use only the local language in its overprints. These are the other States:

(Faridkot State had dropped out of the Convention by 1913, when your stamp was issued.)