I'm far from an expert, but I don't think you can decrease the storage space - once it's been increased, it can't be decreased, even if you're not actively using the additional space in your tables.
I would think that your only alternative would be to back up your existing data, and then fire off a new instance of Cloud SQL and import your data into the new instance. The new instance would then start from minimal storage and increase only as needed for your existing data. Once the new instance is confirmed up and running with the correct data, the original instance that ballooned out of control could be deleted.
Dan